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.
Australia to cut emissions by 62-70pc by 2035
Australia to cut emissions by 62-70pc by 2035
Sydney, 18 September (Argus) — Australia set its much-anticipated greenhouse gas (GHG) emissions reduction target for 2035 on 18 September, aiming to cut emissions by 62-70pc from 2005 levels. The emissions target takes the mid-point of a preliminary indication of 65-75pc from the country's Climate Change Authority (CCA) in 2024. The target, which is part of Australia's next Nationally Determined Contribution (NDC) to be submitted to the UN under the Paris Agreement, means the country will need to add at least 19 percentage points to the legislated 43pc reduction target for 2030 . The latest projections from the Labor federal government indicate the 2030 emissions target as within reach . But there have been challenges to achieving the key 82pc renewable electricity target for 2030, Australia's climate change and energy minister Chris Bowen indicated, when announcing a boost to auctions under the Capacity Investment Scheme (CIS). Plans The CCA's final independent advice to the government, also released on 18 September, was for the 62-70pc reduction, with the range reflecting "uncertainties at a national and international level", the statutory body said. Around half of the 2035 emissions reductions would be achieved through more renewable electricity generation backed by storage, according to the CCA advice. This would be followed by electrification and improved efficiency of transport and buildings, accounting for a further 11-14pc of the required emissions reductions, with the effects of the New Vehicle Efficiency Standard that came into force in 2025 contributing a large portion. Another 6pc of the required emissions cuts could be achieved by scaling up land-sector carbon removals through the Australian Carbon Credit Unit (ACCU) scheme, with measures such as stopping old-growth clearing, reducing native forest harvesting and planting new forests. Most of the remaining reductions would come from ongoing efficiency and emissions intensity improvements across industry, mining and agriculture, which could be achieved through the federal compliance carbon market's safeguard mechanism, as well as investments in low-carbon liquid fuels, hydrogen and other technologies. Extending the current 4.9 pc/yr baseline decline rate faced by facilities under the safeguard mechanism until 2035, from 2030, could reduce emissions from industry and resources by almost a third, the CCA said. Other initiatives The government announced a new A$5bn ($3.33bn) Net Zero Fund within the A$15bn National Reconstruction Fund (NRF) on 18 September, supporting manufacturing of renewables and deployment of low emissions technologies. This comes one day after it earmarked A$1.1bn to support biofuels and e-fuels under a 10-year incentive programme. It previously announced a further A$2bn to the federal agency the Clean Energy Finance Corporation for renewable energy projects. The government also released its Net Zero Plan, along with six sectoral decarbonisation plans across electricity and energy, industry, resources, agriculture and land, transport and infrastructure, and built environment. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Australia to spend $740mn on biofuels incentives
Australia to spend $740mn on biofuels incentives
Sydney, 17 September (Argus) — The Australian government has earmarked A$1.1bn ($740mn) to support biofuels and e-fuels under a 10-year incentive programme. The Cleaner Fuels Program aims to incentivise production of biofuels, e-fuels made by combining renewable hydrogen and CO2 and low-carbon fuels made from waste materials, the federal government said on 17 September. Small amounts of biodiesel and ethanol are already produced in Australia, but the first outputs of "drop in" biofuels supported by the programme are expected by 2029. A public consultation will take place this financial year to confirm details of the programme, and grants will be awarded through a competitive process. Producing cleaner fuels from Australian feedstocks will aid emissions reduction in hard-to-abate sectors, such as mining and aviation, climate change and energy minister Chris Bowen said. Transport is expected to be the largest single contributor to CO2 emissions by 2030 under government modelling. Australia exports about A$4bn/yr worth of feedstocks, including canola seed and tallow to biofuel producers in Singapore, the EU and the US. An Australian low-carbon liquid fuel industry could be worth A$36bn by 2050, federal agency the Clean Energy Finance (CEFC) estimates. An established Australian low-carbon fuels industry could reduce cumulative CO2 equivalent emissions by 230mn t by 2050, according to the CEFC. This is equivalent to 2.3 times Australia's current annual transport emissions, or the annual emissions from 86mn cars. Several e-fuel projects are planned in Australia, including initiatives by Abel Energy and HIF Global in Tasmania. Industry body the Australian Hydrogen Council welcomed the government's announcement, saying that the funds "can have a significant impact on industrial decarbonisation". Developing low-carbon fuels "simultaneously to hydrogen capability is critical," AHC's chief executive Fiona Simon said. "We need to build capacity for hydrogen to reach scalability of low carbon liquid fuels, as hydrogen will be needed to process biomass and produce methanol for shipping or sustainable aviation fuels." By Grace Dudley and Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Australia to spend $740mn on biofuels incentives
Australia to spend $740mn on biofuels incentives
Sydney, 17 September (Argus) — The Australian government will spend A$1.1bn ($740mn) on biofuels production over 10 years, the federal government announced today, in a major boost to the sector. The Cleaner Fuels Program aims to incentivise biofuels production in Australia, including renewable diesel and sustainable aviation fuel (SAF), the federal government said on 17 September. Small amounts of biodiesel and ethanol are already produced in Australia, but the first outputs of "drop in" biofuels supported by the programme are expected by 2029. A public consultation will take place this financial year to confirm details of the programme, and grants will be awarded through a competitive process. Producing cleaner fuels from Australian feedstocks will aid emissions reduction in hard-to-abate sectors, such as mining and aviation, climate change and energy minister Chris Bowen said. Transport is expected to be the largest single contributor to CO2 emissions by 2030 under government modelling. Australia exports about A$4bn/yr worth of feedstocks, including canola seed and tallow to biofuel producers in Singapore, the EU and the US. An Australian low-carbon liquid fuel industry could be worth A$36bn by 2050, federal agency the Clean Energy Finance (CEFC) estimates. An established Australian low-carbon fuels industry could reduce cumulative CO2 equivalent emissions by 230mn t by 2050, according to the CEFC. This is equivalent to 2.3 times Australia's current annual transport emissions, or the annual emissions from 86mn cars. The announcement of the Cleaner Fuels Program was welcomed by multiple industry participants, including bioenergy developer Jet Zero , lobby group Bioenergy Australia, the Low Carbon Fuels Alliance of Australia and New Zealand and the National Farmers Federation. The A$1.1bn is in addition to a A$250mn investment in low-carbon liquid fuels research through the Future Made in Australia fund that was announced earlier this year. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EPA eyes range of biofuel waiver compensations: Update
EPA eyes range of biofuel waiver compensations: Update
Updates throughout with EPA proposal. New York, 16 September (Argus) — President Donald Trump's administration may not require oil companies to fully compensate for biofuel blending exemptions granted to small refiners, according to a proposal released today, a potential blow to US farmers and biofuel producers worried about lost demand. The Environmental Protection Agency (EPA) is considering reallocating all or just half of the exempted volumes for 2023 and later, the agency said Tuesday in the proposal. EPA is also soliciting comment on other options, including reallocating 75pc of the exempt volumes, reallocating 25pc or reallocating none. The agency last month fully or partially granted dozens of small refiners' requests for exemptions from biofuel blending program mandates and said it was readying a plan to hike blending obligations on other refiners to make up for the exemptions. While a White House official said last week that the proposal would include "options", EPA signaling no preferred path on Tuesday was a blow to biofuel and oil refiners seeking clarity on the program. Farm advocates have warned that any plan that would not entirely redistribute biofuel mandates lost to exemptions would throttle demand for their products at a time when trade wars and low crop prices are challenging farm economies. Finalized biofuel quotas likely late EPA is accepting comments on the proposal through 31 October, likely dooming its prior plan to finalize before November new biofuel quotas for 2026 and 2027. Two lobbyists said administration officials privately have signaled EPA will miss its timing target. The agency plans on making up for 2023-2025 exemptions by hiking volume targets in future years, meaning EPA has to decide a path forward on reallocation before issuing targets for 2026 and 2027. EPA declined to provide specific timing but said it would set new biofuel quotas and reallocation plans in the same final regulation. EPA's Renewable Fuel Standard requires oil refiners and importers to annually blend different types of biofuels or buy Renewable Identification Number (RIN) credits from those that do. Recent exemptions for the 2023 and 2024 compliance years reduce refiners' requirements by 1.4bn RINs for those years, and EPA anticipates that forthcoming exemptions for this year's quotas will mean 780mn fewer RINs, without reallocation. But EPA punting a final decision on redistributing exempted volumes leaves larger refiners with little clarity on how much biofuel volume they should prepare to bring to market next year. Forcing companies to fully compensate for exemptions could mean they have to ensure biofuels account for 15.47pc of the fuels they bring to market next year, but just 15.14pc if they have to account for only half of the exempted volumes, according to the proposal. Full reallocation would also mean higher mandates across program categories, including for blending costlier cellulosic biofuels and biomass-based diesel. Those estimated percentage requirements are based on a June plan to drastically hike required biofuel blending in 2026 and 2027, which has not been finalized. The White House this week cancelled previously scheduled meetings with industry groups about the proposal and sped it through a typically lengthier interagency review process, a signal that officials understand the issue's urgency. But EPA's generous exemptions for small refiners coupled with its uncertainty on how to mitigated the demand loss threaten its pledge to get the long-delayed biofuel program back on a regular schedule. Whatever EPA decides is likely to frustrate oil refiners, who could sue if regulators force them to bring more biofuel volumes to market to compensate for their competitors. Conservative lawmakers otherwise on board with Trump's "energy dominance" agenda have increasingly objected to his administration's support for biofuels . Often-volatile biofuel markets were relatively muted after the proposal's release on Tuesday, as traders continue to await more certainty on biofuel policy. Soybean oil futures were up nearly 2pc on the day, tracking gains in crude, while D4 biomass-based diesel and D6 conventional biofuel RIN credits traded up slightly from Monday's session. EPA also reiterated Tuesday that it plans to factor in expected exemptions for 2026 and 2027 when finalizing mandates for those years and that it will not reallocate pre-2023 exemptions, since credits from those years are expired. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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