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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Brazil's August soybean oil exports rise 31pc
Brazil's August soybean oil exports rise 31pc
Sao Paulo, 4 September (Argus) — Brazil's August soybean oil exports increased by 31pc from a year earlier to nearly 206,648 metric tonnes (t), driven by stronger Indian demand. January-August exports increased by 42pc from a year earlier to around 1.57mn t. India was the leading destination, accounting for nearly 176,683t, or 85pc of total Brazilian soybean oil exports in August. Increased international demand for Brazilian soybean oil comes as buyers switch to soybean oil cargos after palm oil prices surged following higher biodiesel blending mandates in Indonesia and Malaysia. This brought Latin American soybean oil into focus among Asian vegetable oil importers. At this rate, Brazil's soybean oil shipments could reach 2mn t in 2026, according to grain processing companies' estimates, higher than the 1.7mn t projected from Brazil's association of vegetable oil industries Abiove. Beef tallow exports Brazil's August tallow exports fell by approximately 37pc year-on-year to 40,600t. January-August exports dropped by 35pc from the same period in 2025 to around 231,800t. The decline was largely driven lower volumes to the US, the main overseas destination for Brazil's beef tallow. Higher tariffs and uncertainty over trade policy have reduced buying interest and disrupted established trade flows. Market participants expect exports of beef tallow to decline further in the coming months, as most of the volumes shipped recently were negotiated before the new tariffs imposed by the administration of US president Donald Trump took effect. The limited quantities still expected to be exported to the US are likely to move under duty drawback provisions, which allow tariffs paid on imported inputs to be refunded under certain conditions. Biodiesel exports Brazil exported approximately 7,400t of biodiesel in August, down by 45pc from the same month a year earlier. Cumulative exports for January-August totaled about 73,130t, up by 6pc from the corresponding period in 2025. Monthly export volumes are driven not only by overseas demand and arbitrage opportunities, but also by the availability of biodiesel produced from low-carbon feedstocks. This is particularly important for Europe, the primary destination for Brazilian biodiesel exports, where fuel must meet sustainability criteria to qualify for greenhouse gas reduction credits and other renewable fuel incentives. By Beatriz Pacheco and Natalia Dalle Cort Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US Gulf-China VLCC rate hits record high
US Gulf-China VLCC rate hits record high
New York, 4 September (Argus) — The rate for a bellwether very large crude carrier (VLCC) shipment from the US Gulf coast to China hit its highest level on record today of over $14/bl on strong Asia-Pacific demand, driven by the escalation of hostilities between the US and Iran at the start of Hormuz. Commodity trader ST Shipping put the VLCC Helios on subjects for a US Gulf coast to Asia-Pacific voyage loading from 13-16 October at $29.75mn lumpsum, including $250,000 load-port fees, equivalent to $14.29/bl, boosting the rate for a US Gulf coast-China voyage by $1.15mn day-over-day to that level. This represents the highest level since Argus began its US Gulf coast-China assessment in November 2017. That deal came after Japanese commodity trader Idemitsu put the Maran Apollo on subjects for a US Gulf coast-Japan voyage at $29.25mn, including load-port fees. Norway state-owned refiner Equinor and US independent producer Occidental both put VLCCs on subjects for elsewhere in Asia-Pacific at $27.65mn each, including load-port fees. Charterers have put at least 10 VLCCs on subjects for US Gulf coast to Asia-Pacific voyages since 31 August, including the four from today. Asia-Pacific demand was also high this week for Brazilian crude, with at least eight VLCCs provisionally hired by charterers in that spot market. This was largely driven by strong Chinese restocking demand to keep up with high refined product demand from elsewhere in Asia-Pacific, as Chinese refiners burned through crude stocks, with no end in sight to largely cut-off Mideast Gulf crude flows. The higher competition for Brazilian shipments from these buyers since mid-August likely contributed to the increase in US-loading VLCC demand from Asia-Pacific buyers outside of China like Japan and Taiwan. Midsize rates climb on VLCC spillover The surge in freight rates for the largest crude carrier segment has helped to boost rates for Suezmax and Aframax tankers, with the former in particular benefiting from split cargoes from VLCCs in some instances. The rate for a Brazil-Europe Suezmax voyage jumped by 16.5pc day-over-day to Worldscale (WS) 245 today, while US Gulf coast-loading Suezmax shipments into Europe rose by 11pc to WS202.5 from Thursday. Rising freight rates for VLCCs in the west Africa spot market, which shares a tonnage pool with the Brazilian market, encouraged charterers to explore splitting these 2mn bl cargoes onto two 1mn bl Suezmax tankers on 2 September, according to a shipbroker. Meanwhile, Aframax shipments of WTI crude from the US Gulf coast into Europe have been trading at, and even below, parity with VLCC-sized shipments of WTI on the same route on a $/bl basis. Aframax tankers typically trade at a premium to VLCCs in this context given the greater number of ports the smaller tanker can access and its ease in loading and unloading compared to VLCCs. The last time Aframax-sized shipments of WTI into Europe were cheaper than VLCCs on the same route was in February 2021. The surge in VLCC demand from Asia-Pacific will likely encourage US Gulf coast buyers globally to increasingly consider the midsize segment in the near term, maintaining the upward pressure on rates for Aframaxes and Suezmaxes even after the long holiday weekend for US traders. By Ross Griffith Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Japan's Eneos, Nippon Paper to build bioethanol plant
Japan's Eneos, Nippon Paper to build bioethanol plant
Tokyo, 4 September (Argus) — Japanese refiner Eneos and paper producer Nippon Paper are building a pilot plant to produce second-generation bioethanol from wood residues and waste paper. The pilot plant will have a bioethanol production capacity of around 300 l/d at Nippon Paper's Fuji mill in central Japan, the companies said on 3 September. Trials will begin in the April 2027-March 2028 fiscal year using non-edible feedstocks such as wood residues and waste paper, Eneos said. Second-generation bioethanol, derived from non-edible feedstocks, does not compete with food supplies and can help reduce CO2 emissions. Eneos has not specified how bioethanol from the plant will be used but told Argus it could consider gasoline blending or use as a feedstock for sustainable aviation fuel (SAF). Plans for a commercial plant have not been decided, although the companies will assess the possibility through pilot-scale demonstrations, Eneos added. Nippon Paper is also developing another bioethanol project at its Iwanuma mill in northeast Japan through Morisora Bio Refinery — a joint venture with trading house Sumitomo, Green Earth Institute (GEI) and Japan Airlines (JAL). Morisora plans to supply Idemitsu with second-generation bioethanol made from woody biomass for SAF production via an alcohol-to-jet pathway at Idemitsu's planned 100,000 kl/yr Chiba facility. Japan plans to begin supplying 10pc bioethanol-blended gasoline, or E10, in Okinawa prefecture in fiscal 2028 before expanding the rollout in fiscal 2030. The country currently mainly blends bioethanol-derived ETBE into gasoline to reduce CO2 emissions from the automotive sector. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Oregon forecasts renewable diesel deluge
Oregon forecasts renewable diesel deluge
Houston, 3 September (Argus) — A renewable diesel deluge in 2026 and 2027 will add to Oregon's reserve of credits needed to comply with road fuel carbon requirements, according to a new state forecast. An annual outlook to determine the feasibility of Oregon's Clean Fuels Program forecast renewable diesel would make up 29pc of the state's liquid diesel pool in 2026 and nearly a third of it in 2027. The Department of Administrative Services projected that Oregon would generate nearly 300,000 more credits than needed for compliance in 2026, bringing the reserve of credits to more than 1mn for future years. The reserve would grow by another 224,000 credits in 2027, according to the forecast the department published Thursday for comment. Tougher targets would mean both gasoline and diesel deficits continue to increase despite falling physical consumption. On-road electric vehicle charging credits would also grow based on the number of registered vehicles, by almost 15pc in 2026 and another 17pc in 2027. Low-carbon fuel standards (LCFS) such as Oregon's attract the delivery of renewable diesel and other lower-carbon alternatives through a state-administered credit market. Regulators each year reduce the allowed carbon intensity of road fuels. Suppliers must offset deficits from higher-carbon fuels with credits generated from the distribution to the market of approved, lower-carbon alternatives. Renewable diesel cracked 25pc of the state's liquid diesel pool for only the second time in the first quarter of 2026, according to the most recent Department of Environmental Quality data. The fuel made up 32pc of the state's roughly 41,000 b/d of consumption during the quarter. Oregon has a rulemaking underway to consider ways to use the program to add state-level support to electric vehicle adoption and to pursue a 50pc reduction in carbon intensity by 2040. The program currently calls for a 37pc reduction by 2035. By Elliott Blackburn Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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