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.
Brazil's 2024 GHG emissions reach 6-year low
Brazil's 2024 GHG emissions reach 6-year low
Sao Paulo, 3 November (Argus) — Brazil's greenhouse gas (GHG) total gross emissions fell by almost 17pc in 2024 from a year earlier, reaching the lowest levels since 2018, according to greenhouse gases tracking platform SEEG. The country emitted 2.14bn metric tonnes (t) of CO² — including carbon capture offsets from preserved areas and naturally recovered forests — in 2024, down from 2.57bn t of CO² a year earlier and higher than the 2.1bn t of CO² in 2018. The decrease from 2023 was mostly driven by [reduced deforestation in both the Amazon rainforest and tropical savannah Cerrado](http://direct.argusmedia.com/newsandanalysis/article/2749051) biomes, Brazilian climate umbrella group Observatorio do Clima said. Land-use change, mostly deforestation, generated around 906mn t of CO² in 2024, down by 32pc from a year earlier. The sector accounted for 42pc of national emissions, down from 52pc in 2023. Other sectors, such as energy, industry and waste management increased emissions by 0.8pc, 2.8pc and 3.6pc, respectively, from a year earlier. Meanwhile, the livestock industry represented more than half of Brazil's total emissions in 2024. Cattle raising is Brazil's largest emitter because of its widespread deforestation practices, indirect use of energy and methane emissions from cattle digestion. Waste management and sewage emissions rose by 3.6pc last year from 2023, reaching an all-time high level. Despite representing 5pc of total emissions, a larger population and broader solid waste gathering pushed up the sector in 2024. Brazil move 70pc of its solid waste to sanitary landfills but failed to comply with its expired target to eliminate all trash dumps by 2024. As for the energy sector, record ethanol demand in 2024, reaching 36bn l (621,370 b/d), contributed to the sector's timid increase in emissions year-on-year by cutting passenger transport emissions in the period, SEEG said. Mitigation in Brazil relies heavily on countering deforestation. But the country needs to cut emissions in all sectors to achieve its nationally determined contribution (NDC) target of 1.2bn t of CO² by 2030, SEEG's coordinator David Tsai said. Brazil also reduced its net emissions to 1.49bn t of CO² last year, down from 1.92bn t of CO² in 2023, SEEG data show. National net emissions more than halved to 249mn t of CO². But the country might reach 1.44bn t of CO² in net emissions this year, about 9pc above its NDC target for 2025. Brazil will host the upcoming UN Cop 30 climate summit, in Belem, hoping to bolster itself as a [key voice in climate leadership](http://direct.argusmedia.com/newsandanalysis/article/2734245). But it is facing backlash over some environmental decisions, such as the recent license granted to state-controlled Petrobras by environment watchdog Ibama to drill a block in the Foz do Amazonas basin , in the environmentally-sensitive equatorial margin. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EU grants €2.9bn in ETS innovation funding
EU grants €2.9bn in ETS innovation funding
Brussels, 3 November (Argus) — The European Commission has announced grants of €2.9bn to 61 net zero decarbonisation projects using revenues from the bloc's emissions trading system (ETS). The commission said the projects will cut some 221mn t of CO2 equivalent in their first decade of operation. A total of 10 projects were selected for large-scale decarbonisation grants totalling €1.26bn, five in cement and lime, three in refineries, one in chemicals and one projected for carbon capture and storage (CCS) infrastructure. A further 19 medium-scale projects, with a capital expenditure of €20mn-100mn, received a total of €459mn. Cleantech manufacturing funding was also awarded for 12 projects in renewables, energy storage, heat pumps and hydrogen production, with a total budget of €775mn. And 23 projects received €1bn for decarbonising transport, including 10 projects for sustainable fuel production, with €153mn for four electro-sustainable aviation fuel projects, €251mn for three e-methanol maritime projects and €78mn for e-ethanol, biodiesel and bioLNG. More than 270 projects have received a cumulative €15.6bn under the innovation fund to date. A further call is expected in December. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Netherlands to treat marine Ucome as fossil: Correction
Netherlands to treat marine Ucome as fossil: Correction
Clarifies in paragraphs 2-3 that all fuels supplied count towards the overall obligation level and to add information on the impact of the policy. Corrects paragraph 10 to clarify that bio-LNG will be treated as a liquid fuel rather than a gaseous fuel. Story was originally published on 28 Oct. London, 31 October (Argus) — The Dutch Emissions Authority (NEa) has confirmed that used cooking oil methyl ester (Ucome) will be treated as a fossil fuel if supplied to the maritime sector under the country's upcoming transposition of the EU's Renewable Energy Directive (RED). Biofuels will carry a carbon intensity (CI) value of 94g CO₂eq/MJ when calculating the overall mandate level for the sector. The greenhouse gas reduction obligation is calculated as a percentage based on all fuel supplied to a sector, not just the fossil component of the fuel. The maritime sector cannot generate compliance from using crop-based biofuels or biofuels made from feedstocks listed in Part B of RED's Annex IX — which includes Ucome, a popular choice among shipowners for meeting FuelEU requirements. NEa clarified that not only will crop or IX-B fuels not count towards fulfilling the maritime obligation, but the fuels would still count towards the total fuel supply used to calculate the obligation level, using the same carbon intensity as fossil fuel. Using non-compliant biofuels would thus effectively increase the amount of eligible biofuel needed to meet the mandate. This policy is regardless of the duty status of the biofuel, as fuel can be used pre-customs clearance for bunkering. Ucome would remain eligible for compliance in the road transport and inland waterways sectors. Over-compliance from those sectors can also be sold to the maritime sector up to the flexible allowance limit, which is 1.1pc in 2026, meaning there is still some role for Ucome in meeting the overall maritime obligation. Market participants expect reduced availability of Ucome for bunkering in the Amsterdam-Rotterdam-Antwerp (ARA) hub next year. What participants see as a regulatory mismatch between FuelEU requirements and the domestic RED mandate has led to doubts over the attractiveness of the Netherlands for bunkering compared with other countries which allow a wider range of biofuels to be used. Some Dutch suppliers indicated they will continue offering Ucome blends if demand persists, but with a premium reflecting ERE ticket prices. The Dutch lower house of parliament approved its RED III draft on 2 October, with the upper house now set to approve or deny the proposal. It is expected to be approved and come into force on 1 January 2026. Under the draft, the Netherlands will transition from its current energy-based HBE ticket system to a greenhouse gas (GHG)-based ERE system. Under the new framework, one ERE will represent a 1kg CO₂eq reduction across a fuel's lifecycle, compared with one HBE representing 1GJ of renewable energy. For the transition from this year to the next, one HBE is equivalent to 46 EREs. EREs will be issued separately for the land transport (LREs), inland waterways (BREs), and maritime (ZREs) sectors. Compliance deadlines will shift from 1 May to 1 April annually. The 2025 compliance year will be finalised under the existing HBE system, with the new registry going live in May 2026. However, deliveries from 1 January 2026 must comply with the new rules. Other changes Under the proposed system, there will be no multipliers or double-counting of tickets. The audit requirement for waste-based fuels to be eligible for double-counting will also be removed. But a proposal has been made for category 3 tallow to carry a 0.5 multiplier, generating half as many ERE-O tickets. Renewable fuels of non-biological origin (RFNBOs) will no longer carry multipliers, but their use in refineries will generate RAREs, a separate ERE category. Nea also confirmed that gaseous biofuels rules remain unchanged. Gaseous biofuels, including bio-CNG, must be unsubsidised, certified as sustainable, and carry a Dutch biomethane guarantee of origin (GOO) to qualify for EREs. Bio-LNG will count as a liquid fuel, and therefore adhere to the rules of liquid fuels. Dutch lawmakers have passed a motion calling on the government to include bio-LNG under the EU's mass balance system . Ethanol must be denatured to be eligible. The new system will also recognise home charging for electric vehicles and allow registration of electricity deliveries to mobile machinery. Earlier this month, Dutch lawmakers passed a motion to extend its RED III renewable fuel timeline to 2035, from 2030 . By Madeleine Jenkins HBEs (Current Dutch ticket system) HBE-G (Annex 9 Part A) HBE-IXB (Annex 9 Part B) HBE-O (Electricity, RFNBO) HBE-C (Conventional e.g. crop) NEA EREs (Proposed ticket system from Jan 1 2026) Land (LREs) Inland waterways (BREs) Maritime (ZREs) RAREs ERE-G (Annex 9 Part A) ERE-G (Annex 9 Part A) ERE-G (Annex 9 Part A) RFNBO used in bio- or conventional fuel refinery ERE-B (Annex 9 Part B) ERE-B (Annex 9 Part B) ERE-E (Electricity) ERE-E (Electricity) ERE-E (Electricity) ERE-O ('Other' specific waste/crop biofuels) ERE-C (Conventional e.g. crop) ERE-O ('Other' specific waste/crop biofuels) ERE-R (Renewable fuels of non-biological origin) ERE-O ('Other' specific waste/crop biofuels) ERE-R (Renewable fuels of non-biological origin) ERE-R (Renewable fuels of non-biological origin) NEA Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Clear airline demand key to Corsia carbon credit supply
Clear airline demand key to Corsia carbon credit supply
Singapore, 31 October (Argus) — Clear airline demand signals and education for countries hosting carbon projects on revenue opportunities are needed to boost the volumes of Carbon Offsetting and Reduction Scheme for International Aviation (Corsia)-eligible carbon credits, which are now in extremely short supply. "Around 10 countries will supply 70-80pc of credits during the 2024-26 Phase I of compliance from our studies, but most are not ready with letters of authorisation (LoA), hence the undersupply," Juan Carlos Arredondo, director of Knowledge, Policy and Advocacy at carbon services firm Abatable, said at a panel discussion during the International Air Transport Association (IATA)'s World Sustainability Symposium in Hong Kong last week. Abatable also predicts a significant rise in carbon credit prices in the next 18-24 months before the compliance deadline. Futures pricing for Corsia Phase 1 has picked up in recent weeks on concerns about the amount of supply that will be deliverable into the front-year contract. A deal was sealed this week for the Ice December 2025 contract at $21/t CO2 equivelant (CO2e), the highest trade level heard to date. In addition, there is a "big revenue opportunity" for governments from Corsia, IATA's director general Willie Walsh said in a media briefing on the sidelines of the event. "There's around $1.5bn of funds which will go to countries providing Corsia-eligible units this year, which will rise over time to around $35bn-40bn in 2035," Walsh said. Corsia implies a determinable demand for internationally transferred mitigation outcomes (ITMOs) from the aviation industry, resulting in considerable investments in countries hosting projects that generate Corsia-eligible emissions units. Airlines are projected to spend around $30bn-60bn on these credits from now until 2035, said Marie Owens Thomsen, senior vice president of sustainability and chief economist at IATA. The wide range is due to uncertainty around future prices, but the figure stands at roughly $35bn considering current ones. Market sources have assessed physical spot prices for credits approved for Corsia Phase 1 — currently limited to a single project based in Guyana — at around $22/t CO2e or slightly higher this week. This is in comparison to the Argus -assessed HEFA-SPK jet/kerosene CO2 abatement fob Singapore price at $642/t, which is the cost of abating 1t of CO2e GHG emissions by fuelling a plane with physical SAF volumes rather than fossil jet fuel. Airlines need to signal clear demand But airlines need to clearly announce their demand for Corsia-eligible credits, said Rocco Huesch, chief executive and co-founder of UK-based project developer and carbon market consultancy Valor Carbon. He cited the example of Japanese conglomerates aggressively engaging governments to get projects authorised under Japan's Joint Crediting Mechanism (JCM), a bilateral carbon credit framework. "We need more PR for the Corsia scheme, to explain technical carbon terms to host countries. This is now being left to project developers, which are oft small and underfunded," said Boris Hristov, managing director for climate at fellow project developer Koko Networks. "Governments will also more likely listen to a national airline, more than project developers or even myself, simply due to aviation's importance to their economic development," added Corsia's technical advisory body chair Molly Peters-Stanley. But governments have the option to use carbon credits towards meeting their Nationally Determined Contributions (NDCs) under the Paris Agreement, which could thus compete with Corsia for carbon credit supply, panellists said. Demand from Corsia and from countries under the Paris Agreement are roughly equivalent now, Peters-Stanley added. "While states have put obligations on airlines under Corsia, they are not themselves obliged to supply the credits. The upcoming COP in Belem would be a good place to align efforts, avoid policy fragmentation, and achieve certifiable reductions in carbon dioxide emissions," IATA's Owens Thomsen said. Long road to get carbon credits to market Another challenge would be getting carbon credits to market, especially in regions such as central Asia that are new to the carbon space. Valor Carbon kicked off their flagship 25,000 hectare afforestation project in Kyrgyzstan in end-2024. "You have to understand how bizarre [carbon markets] are to a country that's historically not done much there," Valor's Huesch said. "If I had a dime for every single time a ministry official asked me, ‘So are you basically just selling air?' I'd have a dollar by now. This is a pretty common issue we're facing." Huesch also emphasised the "incredibly long" lead time of bringing these credits to market, involving everything from acquiring land codes ready to getting buy-ins, from the locals to regional governments, to the prime minister, who has since endorsed the above project. "But we're now really moving forward with the LoA, which should be a hopeful market signal that supply expansion is possible," Huesch said. "Every compliance carbon market, including that introduced by the Kyoto Protocol, the California cap-and-trade system, has previously run into bottlenecks, and they've all made it to the other side. Let's keep discussing and innovating, and hopefully we'll have a very different discussion this time next year," Corsia's Peters-Stanley added. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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