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 biodiesel blend hike faces delay
Brazil biodiesel blend hike faces delay
Sao Paulo, 13 March (Argus) — Brazil's mines and energy ministry has ruled out raising the biodiesel blend before feasibility tests are completed, amid increased lobbying for a higher mandate as oil prices rise on the US-Iran war. Market participants had expected Brazil's national energy policy council (CNPE) meeting — originally scheduled for yesterday and postponed to 19 March — to include a biodiesel blend increase on the agenda. But the mines and energy ministry told Argus that tests on blends ranging from 16pc to 25pc remain in the final phase of methodological consolidation and experimental activities have not yet started. Without tests proving the new blend levels are technically feasible, the law does not allow the mandatory blend increase schedule to move forward, the ministry said. Brazil's fuels of the future law projected an increase in the blending mandate to 16pc from the current 15pc this month. The ministry expects to start experimental trials in the first half of 2026. The original schedule planned for the tests to be completed in June, with final validation in August. Brazilian hydrocarbons regulator ANP today approved a draft ordinance establishing guidelines for its participation in one of the projects that will test biofuels blends. Brazil's parliamentary front for biodiesel FPBio has intensified lobbying to increase the biodiesel blend to 17pc from 15pc, calling it a "strategic measure for energy sovereignty, economic stability and the protection of Brazilian consumers". Brazil can currently supply up to a 21.6pc biodiesel blend into diesel, industry associations Abiove and Aprobio said in a joint statement supporting the increase. Prices for imported 10ppm (S10) diesel at Brazilian ports surpassed biodiesel contract prices on 6 March for the first time since October 2023, as global oil derivative prices rose on the US-Iran war. The government announced on 12 March measures to eliminate the federal VAT-like PIS/Cofins tax levy on diesel imports and sales to mitigate the impact of the Iran war on oil prices. Market participants also expect the CNPE meeting to address the authorization of biodiesel imports, but there is no official confirmation on the subject. Ethanol market participants have also speculated a rise in the mandatory ethanol blend in gasoline to 32pc from 30pc, but there are no official timelines set in the Fuels of the Future law for this change. The mines and energy ministry said it continuously monitors the international energy scenario and its potential effects on the domestic fuel market. By Lucas Lignon Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Q&A: Exolum on launching UK biomethanol bunkering
Q&A: Exolum on launching UK biomethanol bunkering
London, 13 March (Argus) — Biomethanol is gaining traction as a marine fuel as shipowners work to cut lifecycle greenhouse gas (GHG) emissions. European demand has risen since FuelEU Maritime took effect last year, requiring vessels calling at EU ports to reduce the GHG intensity of their energy use — a target that rises from 2pc today to 6pc in 2030 and 80pc by 2050. Rotterdam's biomethanol bunkering volumes reflected this shift, rising by 200pc on the year to 11,800t in 2025. A growing number of operators are turning to methanol-capable fleets, including new dual-fuel ships ordered by companies such as Maersk. Activity is also picking up in the UK, even without a similar maritime mandate. Exolum and Orsted have launched a biomethanol storage and supply service at the port of Immingham, supported by a dedicated 2,700m³ tank and capacity to refuel vessels of about 400m³ every two weeks. Orsted will use the facility to supply its North Sea offshore wind farm support vessels with biomethanol produced by Methanex. Biomethanol is also used in the UK as a gasoline blending component, although consumption has declined since the US–UK ethanol trade agreement signed last year. Argus spoke with Gorka Penalva, Exolum's northwest Europe commercial lead, about the company's plans and market perspective. What specific market signals convinced Exolum that now was the right time to invest in dedicated biomethanol storage and bunkering capacity at Immingham? Biomethanol is one of the first alternative marine fuels where demand, supply and infrastructure readiness are aligning at the same time. It has a high technological readiness level, and existing oil terminal infrastructure can be repurposed with relatively limited modification. At the same time, we are seeing resilient, long-term demand for low-carbon fuels from the global shipping sector, which remains structurally difficult to electrify. For Exolum, the ability to adapt existing assets at Immingham, combined with a strong strategic fit with our energy-transition roadmap and northwest European growth plan, made the investment case compelling. Our partnership with Methanex and Orsted further reinforced that decision by providing supply certainty and a committed launch customer from day one. Biomethanol sales in Rotterdam have increased under FuelEU Maritime. Has the absence of an equivalent UK mandate made commercial planning more difficult? FuelEU Maritime is creating a clear demand signal in the EU by mandating the gradual uptake of lower-carbon marine fuels. The UK does not yet have an equivalent binding framework for international shipping, although it is moving in the same direction through economy-wide greenhouse-gas reduction targets. Long-term policy clarity always helps derisk investment, particularly for infrastructure designed to scale. At Immingham, however, the ability to repurpose existing infrastructure materially lowers the risk threshold. That flexibility allows us to move ahead even in the absence of a UK-specific mandate, while remaining well positioned should policy evolve further. With 60 methanol-capable vessels in operation or on order, how does Exolum see biomethanol demand evolving in UK ports over the next five years? We expect demand for methanol and biomethanol to grow steadily as more dual-fuel vessels enter global service. These fuels are among the first alternatives likely to scale, supported by liner commitments and relatively low conversion costs for existing terminals. Over the next five years, growth in UK ports is likely to be steady rather than exponential, tracking vessel deliveries and early trade routes rather than speculative supply. Given the resilience of green fuel demand through to 2040 and beyond, we see biomethanol becoming an increasingly important part of the UK bunkering mix. Exolum's national footprint — around 20pc of the UK's bulk fuel storage capacity across 10 ports — positions us well to support that evolution. Are you receiving early interest from non-Ørsted shipowners for biomethanol bunkering at Immingham? Yes. The infrastructure has been designed as a commercial offering rather than a single-customer pilot, with capacity available for additional users from day one. We are in discussions with multiple parties exploring biomethanol as part of their decarbonisation strategies. That interest reflects the broader momentum toward alternative marine fuels across the sector. Is Exolum considering establishing similar biomethanol infrastructure at other UK ports? Yes, where customer demand materialises. We operate terminals at 10 major UK ports, which gives us a strong platform to scale green fuel logistics as markets develop. Our ambition is to build a green bunkering network aligned with how fleets, trade routes and green shipping corridors evolve. Immingham demonstrates the model; replication will depend on demand, emerging routes and the clarity of long-term policy frameworks. Rotterdam biomethanol sales have increased to 11,800t in 2025. Do you see Immingham becoming a meaningful competitor, or will the centre of gravity remain in the ARA region? The growth in biomethanol volumes at Rotterdam underlines the structural strength of the ARA region. Scale, liquidity and proximity to multiple end-users continue to make it the natural hub for trading and redistribution. Immingham has clear potential, particularly linked to UK industrial demand and early marine applications, and it can develop into a meaningful regional hub. However, we do not see it as a direct competitor to ARA. In the near to medium term, the centre of gravity for biomethanol will remain in ARA, with ports like Immingham playing a complementary role as volumes grow and use cases expand. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Indonesia to build 100GW solar power plant
Indonesia to build 100GW solar power plant
Singapore, 13 March (Argus) — Indonesia aims to build a 100GW solar plant as part of plans to accelerate the development of new and renewable energy to strengthen the country's energy security. Indonesia's president Prabowo Subianto has identified the development of large-scale solar power plants and the electric motor conversion programme — which promotes the switch to electric vehicles, especially for motorcyles — as short-term acceleration priorities, the energy ministry (ESDM) said on 12 March. In line with this, Prabowo has ordered the construction of a 100GW solar plant, to "implement the electrification of renewable energy from solar power in the shortest possible time," he said. No further details such as costs or timelines were provided. "We already have the intention of achieving energy self-sufficiency, which we are confident will be achieved within four years," said Prabowo, adding "with this acceleration, we are confident that this energy problem can be resolved." Prabowo had previously announced a plan for 100GW of solar power, consisting of 80GW of decentralised solar systems equipped with battery storage . Energy supply concerns The announcement comes on the back of rising concerns about the disruption of energy supplies in the wake of the US-Iran war, which has effectively halted shipping through the Mideast Gulf and the strait of Hormuz ꟷ the waterway through which 14mn b/d of crude and 6mn b/d of refined products transited before the conflict began. Many countries are facing a more severe energy crisis than Indonesia, and Indonesia has abundant alternative energy sources, Prabowo said. "We have abundant palm oil, sufficient cassava, and we can get fuel from corn and sugar cane. Our brothers and sisters have vast geothermal resources. If I'm not mistaken, these are the two largest reserves in the world that have not yet been fully exploited," he said. National fuel supply is currently secure, energy minister Bahlil Lahadalia said on 11 March, as production and distribution continue to meet public demand in accordance with government-set operational stock standards. But Indonesia's domestic fuel storage tank capacity is currently limited. "Our capacity is no more than 25 days," Bahlil said, adding that available stocks are sufficient for 23 days. But this does not necessarily mean the supply will run out within 23 days, and simply reflects the stock capacity held in the storage tank at any given time, he emphasised. He stressed that ongoing refinery output and continued import volumes would ensure a steady flow of supply. Indonesia is also not solely dependent on the Mideast Gulf for fuel, he added. The country gets most of its volumes from domestic refinery production as well as imports from Singapore and Malaysia. In the long term, the government aims to raise storage capacity . Plans include the construction of new storage infrastructure that can hold at least three months' worth of fuel. By Prethika Nair and Aldric Chew Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Iran war flips Brazil diesel vs biodiesel prices
Iran war flips Brazil diesel vs biodiesel prices
Sao Paulo, 12 March (Argus) — Prices for imported 10ppm (S10) diesel in Brazilian ports recently surpassed contract prices for biodiesel for the first time since October 2023 due to a rise in global oil derivative prices caused by the war in Iran. Prices for S10 diesel imported at the southern port of Paranagua, in Parana state, delivered at Araucaria terminal, reached R5,173/m³ (339¢/USG) on 6 March. That is above the average price of biodiesel contracts in the Parana-Santa Catarina states hub of R4,656/m³, delivered on the same basis and date. The last time the fossil fuel prices exceeded biodiesel prices was in August-October 2023, when the country faced a supply bottleneck and Russia temporarily banned diesel and gasoline exports . At the time, S10 diesel prices reached R5,015/m³, while biodiesel was trading at R4,316/m³ on the same basis. The recent price reversal reinforces the biodiesel sector's lobbying for increasing the biodiesel blending mandate, arguing it would alleviate inflationary pressures. Brazil's fuels of the future law projected an increase in the blending mandate to 16pc from the current 15pc this month. But a new schedule from the mines and energy ministry calls for the completion of the first phase of technical feasibility tests between August 2026-January 2027. S10 diesel prices rose by 45pc from the 28 February start of the war to 10 March, according to the Argus indicator. That tracks increases in heating oil futures contract traded at Nymex. For now, distributors and importers do not see an interruption in domestic diesel supply, despite the uncertain environment in the international market. Current stock levels and those forecast to arrive in Brazil are sufficient to meet domestic market demand until the first half of April, one trader told Argus . Hydrocarbons regulator ANP also sees fuel activities and supply normalized up to now, it told Argus . Brazil imported 2.7bn liters (288,000 b/d) of diesel in January-February, up by almost 17pc from the same two-month period last year, according to trade ministry data. Around 1.5bn liters of diesel is expected to arrive in the country in March, according to data from oil analytics firm Vortexa. Pricing difficulties Market participants are struggling to obtain firm offers for diesel imported because of fluctuations in maritime freight rates and increased demand for fuel in the international market. The interruption of fuel exports from the Persian Gulf has increased demand for US products, mainly for delivery to countries in Europe, Central America and South America. An increase in freight costs has impacted offers presented by US diesel suppliers and also boosted differentials presented by Russian exporters. The Argus indicator for Russian diesel for delivery to the northeastern port of Itaqui, in Maranhao state, on a dap Brazil basis reached a discount of 11.5¢/USG from Nymex contract with May settlement. Offers from other origins other than Russia were at discounts of 3.5¢/USG on the same basis. By Maria Albuquerque and Natalia Dalle Cort Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Spotlight content
Browse the latest thought leadership produced by our global team of experts.
Explore our biofuels products
Key price assessments
Argus prices are recognised by the market as trusted and reliable indicators of the real market value. Explore some of our most widely used and relevant price assessments.
