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.
US refiners warn EPA against late fuel waivers
US refiners warn EPA against late fuel waivers
New York, 26 February (Argus) — A group of US oil refiners that warned against a costly shift to a boutique fuel blend in the midcontinent want President Donald Trump's administration to let the states transition as planned this summer to avoid market turmoil. The Midwestern bloc was supposed to move last year to the lower-volatility summertime fuel, which would allow retailers to keep selling both typical 10pc ethanol gasoline (E10) and blends with up to 15pc ethanol (E15). But the Environmental Protection Agency (EPA) punted the shift just days before summer driving season, frustrating fuel makers and distributors that had already invested millions to move to the boutique blend. "Fuel suppliers should not be put in the same situation again this year", the American Fuel & Petrochemical Manufacturers (AFPM) told EPA on Wednesday, according to a letter shared with Argus . The risk of changing rules remains. While seven states are still set to transition, Ohio backed out last month. Midwestern governors that previously saw the fuel shift as a way to help out corn farmers and pressure oil refiners to lobby for simpler federal E15 rules are now staring down the possibility of higher pump prices in an election year. Any other states that want to cancel the fuel change should have to make a request to do so immediately, according to the refiner group, and at the very least before pipelines start requiring the special blend by 1 April. EPA justified emergency waivers last summer aborting the midcontinent fuel change and allowing E15 gasoline across the country by warning of "extreme and unusual fuel supply circumstances caused by global conflicts". But AFPM warned EPA that such a move this year would be on shakier legal footing, pointing to data showing ample gasoline stocks across the US. The refiners' advocacy comes as a council of Republicans in the US House of Representatives has missed multiple deadlines for reaching agreement on biofuel policy reforms. Earlier drafts circulated by the task force floated allowing year-round E15 sales nationwide and stopping the Midwestern states' transition. The Clean Air Act exempts E10 from summertime smog rules that would otherwise prevent its sale but does not extend the same treatment to E15, despite a similar volatility profile. The midcontinent states as a workaround won EPA approval to opt out of the special treatment for E10, effectively putting E10 and E15 on equal footing by requiring lower-volatility blendstocks for both. The consequence is more complicated logistics for refiners, which may have to cut production of butane, which raises volatility, or invest in infrastructure to store and transport excess supplies. The states approved to move to the lower-volatility gasoline this summer are Illinois, Iowa, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin. Kansas has signaled it could join them in the future. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Australia’s Qantas posts higher Jul-Dec jet fuel costs
Australia’s Qantas posts higher Jul-Dec jet fuel costs
Sydney, 26 February (Argus) — Australian carrier Qantas reported today that its July-December 2025 fuel costs were 3pc up on the year in its half-year results, but growth was less than capacity additions for the period. Qantas' fuel expense for July-December 2025 was A$2.61bn ($1.86bn), slightly above its A$2.6bn guidance and up from A$2.54bn a year earlier . But jet fuel prices were more favourable, leading to a net benefit for the airline, the firm said in its half-year report released on 26 February. The figure was 2pc below the A$2.67bn reported in July-December 2023. The company expects its jet fuel expenditure to total about $A5.11bn for the year ending 30 June 2026, up from A$5bn in 2024-25 , based on consumption of about 89,500 b/d and a price of A$125/bl. The forecast excludes hedging, into-plane costs, sustainable aviation fuel (SAF) premiums and carbon credit costs. Qantas' jet fuel consumption for July-December was about 88,000 b/d, up from 85,000 b/d a year earlier. SAF purchases were 20mn litres, with Qantas expecting to meet a 1pc SAF target in 2025-26. Most of Qantas' SAF refuelling has been at Los Angeles airport in the US, where SAF prices are typically the lowest. (See graph) Qantas is also involved in the SAF-focused fund Saffa, which last month pledged to invest in Dubai-based sustainable aviation fuel (SAF) developer SAF One's planned Middle East plant, with first output expected in late 2028. The company's July-December profit after tax was A$925mn, up from A$923mn in the prior corresponding period, while revenue rose to A$12.9bn from A$12.1bn a year earlier. Earnings were supported by growth in the carrier's more efficient Airbus A321F fleet, which Qantas said has increased its payload capacity and reduced fuel use. Argus ' jet-kerosine Singapore assessment was $92.65/bl on 25 February, down from $100.55/bl on 19 November. By Tom Major and Tom Woodlock Global SAF prices H2 2025 $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
German heating proposals 'jeopardise climate targets'
German heating proposals 'jeopardise climate targets'
Berlin, 25 February (Argus) — Germany's proposed new heating law will jeopardise the country's climate targets in the building sector, environmental groups and energy associations have warned. The law, proposed yesterday evening by ruling parties the CDU/CSU and SPD, would include a rising green gas or green oil quota, termed "bio-stairs", to enable households to stick with gas or oil heating systems. The so-called buildings modernisation act will ensure that "new heating systems will be predominantly CO2-free in future", the parties said. Economy and energy minister Katherina Reiche of the CDU said the proposals offer "free choice of heating" compared with the legislation that they will replace. The buildings energy act passed under the previous Greens-led economy ministry includes a mandatory 65pc renewables share for new heating systems. The proposed new rules call for a 1pc admixture of carbon-neutral fuels from 2028, with new gas and oil heating systems to use at least 10pc of the equivalent biofuel from 2029. The quota would then rise in three stages until 2040. The text mentions biomethane, hydrogen, synthetic fuels and bio-oil as potential fuels to meet the quotas. For hydrogen, it suggests an openness to various production pathways, specifically renewable hydrogen, hydrogen made from natural gas with carbon capture and storage or through pyrolysis, and waste-based hydrogen. The parties expect savings of 2mn t CO2 equivalent (CO2e) by 2030 through these measures. The CDU/CSU and SPD will present the final details of the proposed system in the summer, by which point they aim to have a government draft passed by parliament, with the law scheduled to enter force on 1 July. Existing funding programmes will continue until at least 2029. Critical thinking Environmental group DUH's managing director Barbara Metz said scrapping the 65pc renewables rule will make climate neutrality in the building sector "effectively unattainable". Metz flagged a recent high administrative court ruling calling for more climate action , particularly in the country's buildings and transport sectors. The CDU/CSU and SPD have stressed that the targets under Germany's climate action law will continue to apply. Should an evaluation in 2030 show that the building sector is not meeting its target, "corrective measures will be taken", they said. But allowing gas and "even" oil heating systems to be installed with initially "relatively low" biofuel content, while at the same time abolishing the 65pc requirement, would jeopardise Germany's climate targets, energy and water association BDEW managing director Kerstin Andreae said. And "ambitious" green fuel quotas will be needed to have an emissions-saving effect, but such high quotas will in turn drive up heating prices, penalising tenants in particular, think-tank Agora Energiewende's Julia Blaesius warned. Green fuels are "scarce" and it remains unclear how demand for them will develop, she said. The CDU/CSU and SPD paper argues that gas and oil suppliers already offer tariffs with an organic component. And the carbon price under Germany's domestic carbon market — expected to be replaced by the future EU emissions trading system for the buildings and transport sectors (ETS 2) from 2028 — does not apply to the climate-friendly fuel component, which will have a cost-cutting effect, they said. Germany's buildings sector emitted around 109mn t CO2e last year, according to federal environment office UBA. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Netherlands opens €33.6mn clean shipping subsidy round
Netherlands opens €33.6mn clean shipping subsidy round
London, 23 February (Argus) — The Netherlands will open the second funding round under its €210mn ($247.8mn) Maritime Masterplan (MMP) on 19 May 2026, allocating €33.6mn to projects deploying alternative marine fuels on newbuild or retrofitted vessels, the infrastructure and water management ministry said. The 2026 call expands on the first 2024 round, which backed hydrogen and methanol propulsion as well as carbon capture systems on LNG fuelled ships. The new round adds "limited eligibility" for ammonia and bioethanol projects. The ministry said the change follows industry feedback seeking wider fuel options. Companies have until 3 November 2026 to apply. Projects can receive up to €8mn each, covering research and development and demonstration activities. Of the total budget, €21.6mn is reserved for projects requesting more than €4mn, with €12mn available for applications below that threshold. Each bid must come from a consortium of at least "two unrelated firms". The funding is intended to support the government's plan to demonstrate around 30 climate neutral vessels in the coming years as part of its zero emission shipping strategy. The first MMP round, open from June to October 2024, awarded €85mn across three technology lines: €40mn for hydrogen powered vessels, €25mn for methanol projects and €20mn for carbon capture systems on LNG ships. A third and final call under the scheme is scheduled for 2029. By Chingis Idrissov Projects selected under the 2024 MMP round Project name Consortium Vessel type Fuel line technology Blue Horizon Carbotreat, IHC, Anthony Veder, TNO Retrofit for LNG tanker (Coral Energy) Carbon capture unit on LNG vessel ME2CC Carbotreat, IHC, others Retrofit for roll-on-roll-off cargo ship (Samskip Kvitbjorn) Carbon capture unit on LNG vessel Columbus Zero One Mineralis, NPRC, Faasse Maritiem Newbuild inland beunschip (sand-carrier barge) Gaseous H2 (350 bar) with fuel cells Gaasterland H2 Mineralis, TNO, Vink Diesel, Kuster H2 Energy, Nexus Marine, Zwijnenburg Shipyard, Verhoef EMC Retrofit deep-suction dredger Hybrid with H2 combustion engine and fuel cells H2Estia Nederlandse Innovatie Maatschappij (NIM), suppliers & research partners Newbuild coastal general cargo ship Liquid H2 with fuel cells Hydro Navis SIF Group, NPRC, Hydro Nova, Marin, NIM, Concordia Damen Newbuild inland push-tug and barge Liquid H2 with fuel cells Nera-H2 NPRC, Marin, Teamco, NIM, others Newbuild river cruise vessel Hydrogen fuel cells and battery system Methanorms Fugro + 9 industrial partners + 5 research institutes Retrofit survey vessel (Fugro Galaxy) Methanol-powered vessel Moby-NL Victrol, Shipping Technology, NIM, Rensen & Driessen, MARIN, TNO Newbuild methanol bunkering vessel Methanol-powered vessel Dutch Maritime Network Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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