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.
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Latest biofuels news
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Paraguay sets biodiesel blend at 8-10pc
Paraguay sets biodiesel blend at 8-10pc
Sao Paulo, 23 June (Argus) — Paraguay's industry and commerce ministry has set the country's mandatory biodiesel blend at 8-10pc, giving the market its first operational benchmark under the new biofuels framework. The decision, reached on 19 June, marks the government's first concrete move following this year's legislative change to Paraguay's biodiesel regime , which expanded the legal blending range to 5-20pc. By setting the initial operating band at 8-10pc, the government is moving above the previous mandate while stopping well short of the new statutory ceiling. The blend takes effect 30 days after its approval. The ministry framed the higher blend as part of a broader strategy to displace imported fuels with domestically produced biofuels, saying the shift would deliver economic and environmental gains, strengthen energy security and support efforts to mitigate climate change. The text also underscores the government's intention to provide the biofuels sector with a more predictable framework for investment. Paraguay's biofuels industry welcomed the decision. In a 23 June statement, the Paraguayan Chamber of Biofuels and Renewable Energies (Biocap) said the regulation marks an important step toward a more diversified energy matrix, greater national energy security and lower dependence on imported fuels. Biocap also said Paraguay has installed industrial capacity, feedstock availability and technical know-how to support further growth in biofuels. The industry group also sought to address compatibility concerns around higher blends, saying international experience shows biodiesel blends that comply with existing quality specifications are compatible with the normal operation of diesel engines. Biocap added that fuel quality and compliance with technical standards will be critical for sustainable sector growth. By Flavia Alemi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Methanol-to-jet nears ASTM approval in SAF supply boost
Methanol-to-jet nears ASTM approval in SAF supply boost
London, 19 June (Argus) — Methanol-to-jet (MTJ) fuel is nearing full approval for use in commercial aircraft, potentially opening a major new route for producing sustainable aviation fuel (SAF) from renewable methanol. The MTJ pathway has passed the key stages of the process by ASTM International, the industry body that approves new fuel for use in aircraft. Industry sources expect remaining formalities to be completed in coming weeks. ASTM's committee recently approved Honeywell's MTJ pathway, the US-based technology provider said this week. This could unlock SAF production from feedstocks such as biomethanol and e-methanol, broadening supply beyond the waste oils and fats used in most SAF production. But the development extends beyond Honeywell. Its technology and fuel samples were used in the qualification work, but the MTJ pathway would be available to all producers operating within the approved specification, when that is adopted by ASTM. The MTJ pathway has passed balloting within ASTM and limited comments remain to be resolved, according to participants. They expect remaining approval steps to be completed at ASTM meetings in Chicago next week, paving the way to include the pathway the next time the organisation revises its D7566 aviation fuel standard. ASTM was not immediately available to confirm the news. The organisation typically confirms pathway approvals when it updates its standard. Honeywell expects the public update to come in July, Honeywell UOP president Rajesh Gattupalli told Argus . New aviation fuel pathways must undergo extensive testing and review before they can be approved. The MTJ process has taken several years. The approval removes one of the main technical barriers facing MTJ and allows the sector to focus on project economics and investment decisions. Until now, lack of ASTM approval has held companies back from taking commercial decisions. "No bank is going to give you a loan without an ASTM certification. No government is going to give you an incentive without an ASTM certification," Gattupalli said. "You don't get an offtake from any airline company without an ASTM certification." Honeywell has licensed its technology to multiple developers, which have been lining up offtake deals, financing, and incentives while waiting. ASTM approval allows them to "move to the next stage," Gattupalli said. The licensor sees most MTJ traction in Europe, where mandates have been spurring demand for SAF, and in China and India, where producers can benefit from strong potential in renewables, he said. Some companies plan to make biomethanol from biomass-derived syngas, while others eye e-methanol from renewable hydrogen and captured CO2. Some hybrid projects would make a mixture of both. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Brazilian ethanol flows start slow under EU-Mercosur
Brazilian ethanol flows start slow under EU-Mercosur
London, 17 June (Argus) — Ethanol exports from Brazil to the EU under the interim Trade Agreement (iTA) with the Mercosur trade bloc, which began on 1 May, have been sluggish so far, as a result of confusion around quota management, difficulties with export licences and uncertainties about the tracking of imported ethanol's final application. Brazil, the Mercosur's largest ethanol producer with a nameplate capacity of more than 77mn t/yr, exported 7,277m³ — approximately 5,780t — of ethanol to EU countries in May, the lowest volume since March 2025, according to Brazilian trade ministry Mdic data. Mercosur is a trade bloc including Brazil, Argentina, Uruguay and Paraguay as permanent members. Increased freight costs as a result of the Iran-US war as well as lower availability of product at the beginning of the 2026-27 sugarcane crop, which spans from 1 April 2026-31 March 2027, weighed on exports. But caution over the EU-Mercosur trade agreement also played a role in diminishing Brazilian ethanol exports to Europe. Many producers and exporters are struggling to access the quotas, and others are waiting to see how practical terms of the deal will unravel. None of the cargoes from Brazil in May have arrived in Europe under the iTA quota, according to market participants. Legal limit Under the EU's implementation regulation, import quotas from Mercosur suppliers are managed under licences and not on a first-come-first-served basis, as some market participants previously assumed. This assumption created some hesitation, with a market participant pointing out that if a cargo was delayed it would run the risk of arriving after the quota had been already allocated, meaning that it would not benefit from the lower or zero tariffs under the quota and incur the maximum Most Favoured Nation (MFN) duty of €192/m³ for undenatured ethanol and €102/m³ for denatured ethanol. Bureaucracy surrounding the licences to benefit from reduced tariffs is also weighing on exports from Brazil. Brazilian producers are struggling with the paperwork needed to export with tariff exemption. Some have even reportedly been denied access, because the Brazilian government only grants the licence to producers and exporters of sugarcane-based ethanol from the north or northeast of the country. Brazil's trade ministry Mdic confirmed to Argus that ethanol from other regions and sources, such as corn, will face no such restrictions. Up until the end of 2026, only a small amount of imported ethanol from Mercosur suppliers will be able to profit from the lower or zero tariffs. This is because the iTA allows for imports of up to 650,000t/yr of Mercosur-origin ethanol, phased in across five years. In 2026, duty-free ethanol imports of only 90,000t are permitted for chemical use and only 40,000t for other purposes, including fuel blending, at an in-quota tariff rate equalling a third of the standard MFN duty. The quotas for this year could be quickly met, considering an IMO2 coated medium range tanker can carry up to 40,000t of ethanol, while a standard stainless steel vessel can carry up to around 18,500t. Smaller chemical tankers frequently carry ethanol too. The EU imported over 60,500t of undenatured ethanol from the Mercosur region in 2025, with more than 72pc of this coming from Brazil, according to Eurostat data. Alcohol misuse Market participants have also voiced uncertainty in relation to how the European Commission will track which industry the imported ethanol will ultimately end up in. Several told Argus that they question what will happen if ethanol imported for the chemical sector ends being used for a different purpose. Under Annex 2-A of the iTA the EU can subject imports to an End-Use Procedure , to conduct the relevant customs checks on the imports' declared use, and that can be applied ethanol imports to ensure their final application. The EU's Union Customs Code (UCC) outlines that to obtain authorisation for this procedure an applicant must have a registered office in the EU customs territory, provide the necessary assurance that the operations using these goods will be properly implemented and provide a guarantee. If end-use conditions are then breached under general EU customs law, a customs debt is incurred, and the importer must pay the difference, plus interest on arrears. Member states set financial penalties for misdeclaration under national law. By Toby Shay and Maria Ligia Barros Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Asia, Europe drive Brazil's ethanol demand: Panel
Asia, Europe drive Brazil's ethanol demand: Panel
Sao Paulo, 16 June (Argus) — Asian and European markets have been driving increasing demand for Brazilian ethanol, including for new market opportunities beyond road fuels, panelists said at the Argus Biofuels and Feedstocks Latin America conference in Sao Paulo on Tuesday. Global demand for ethanol from top biofuel producers Brazil and the US has grown on rising blend mandates in Asian countries such as Vietnam and India and higher fuel supply risks because of the war in the Middle East, Brazilian corn ethanol producer FS' commercial director Paulo da Cunha said. While US ethanol mostly heads to Asia and UK, there is a growing demand for Latin American — especially Brazilian — ethanol in Europe that could rise even more thanks to the recently adopted Mercosur-EU free trade agreement , Paraguayan corn ethanol firm Inpasa's trading director Renato Zicardi said. Brazil's domestic market isinvesting to supply sectors other than road transport, including the alcohol-to-jet route for sustainable aviation fuel and ethanol-fueled vessels, Cunha said. The International Maritime Organization has approved a corn-ethanol route for maritime transport, Zicardi said. Corn- and sugarcane-based ethanol complement each other and are not competitors, further supporting demand, Cunha said. The maturity and diversity of financing sources in Brazil for ethanol projects should help the sector develop in coming years without major hurdles, Spain-based bank Santander's project finance director Marcelo Sahatdjian said. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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