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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German government approves building modernisation law
German government approves building modernisation law
Hamburg, 13 May (Argus) — Germany's cabinet approved the building modernisation act on 13 May, sending it to parliament for further deliberation, with only minor changes from the original draft. The new act will remove the existing requirement that new heating systems run on at least 65pc renewable energy . Instead, owners will again be able to choose between technologies, including gas and oil boilers, heat pumps, district heating, biomass installations or hybrid systems. The core element of the reform remains the increasing quota for climate-neutral fuels, under which gas and oil boilers must gradually use more renewable or low-carbon energy from 2029. Minimum shares are set at 10pc in 2029, 15pc in 2030, 30pc from 2035 and 60pc from 2040. Most of the changes that were made apply to biomass, with rules on a hierarchy for use of wood scrapped following industry opposition. But a new limit was introduced on use of maize and grain in biogas plants. These feedstocks can now make up no more than 40pc for biogas units that became operational after 31 December 2023. Bioenergy industry representatives broadly welcomed the law, but still see shortcomings. Berlin-based lobby group Hauptstadtburo Bioenergie points to a possible loophole, as the new act applies to heating systems installed after it takes effect. Units added since the previous act took force would face no related obligations, leaving an estimated 900,000 oil and gas boilers to fall through the gap. Industry associations are also seeking annual adjustments to bio-targets, rather than steep jumps years apart, arguing this would support investment security and avoid sharp price movements. Changes around biomethane imports have also come into focus. The current bill does not limit EU imports when producers benefit from subsidy schemes, but industry groups have proposed excluding any biomethane that received significant incentives in its country of origin or which counts towards renewable targets there. Details of the bill are still open to amendment. The lower house of parliament, the Bundestag, will first hold a reading before referring the bill to committees, which usually make the most substantive changes based on expert hearings. After committee discussions, the Bundestag will hold second and third readings, before the upper house, the Bundesrat, takes up the bill. Here, there could be delays, as states and municipalities are responsible for implementing and enforcing the law. Disagreements among states could trigger mediation, further slowing progress. The economy and energy ministry wants the law to take force on 1 July. By Svea Winter Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Railroads blast UP-Norfolk Southern merger plan
Railroads blast UP-Norfolk Southern merger plan
Houston, 13 May (Argus) — Union Pacific (UP) and Norfolk Southern's four Class I competitors urged US federal regulators to once again reject as incomplete the merger proposal to create the first US transcontinental railroad company. UP and Norfolk Southern in December filed their original merger application with US rail regulator the Surface Transportation Board (STB), starting the clock on a multi-year process. It will be the largest merger the STB has ever scrutinized, and the process will likely feature high-profile hearings and congressional scrutiny. The three-member STB in January ruled that the would-be partners' merger application was incomplete, sending it back to UP and Norfolk Southern to fill in key informational gaps. The railroads on 30 April refiled their proposal, which they say reinforces their argument the merger would drive growth, save shipping costs and bolster the US supply chain. UP said its updated analysis shows the merger will shift freight shipments from the roads to the rails, saving shippers an estimated $3.5bn/yr and removing about 2.1mn trucks from the road. However, all of the remaining Class I competitors heaped criticism on the merger application. According to BNSF Railway, UP's western Class I competitor, "the amended merger application makes things worse, not better." The refiled application "largely repackages" the first version while offering only "cosmetic changes to gloss over the serious and fundamental competition, pricing, and service concerns that were previously raised", BNSF said in an 8 May filing with the STB. In its updated analysis, UP said the combined railroad will hold a 39pc market share of US rail freight market, which the railroad says would put it roughly on par with BNSF by certain metrics. BNSF said that UP's actual market share would be considerably higher, a fact that it has downplayed in its application. "UP continues to lowball its projected market shares to the board but signals to Wall Street — the engine behind this proposed merger — that the market shares and pricing power will be even higher," BNSF said, urging the STB to reject the application again as incomplete. Canadian Class I railroads Canadian Pacific Kansas City and Canadian National both filed separate comments urging the STB to reject the application as incomplete, as did eastern US Class I railroad CSX. In response to the filings, UP on 12 May said its updated application "is comprehensive and complete, and provides all the information" that the STB needs, including market share data. The merger would create a single rail network stretching about 55,000 miles, handling about half of US freight traffic. UP and Norfolk Southern say that a coast-to-coast network will speed transit times by 24 to 48 hours and lead to greater efficiency. The two companies expect the transaction to be completed in the first half of 2027. The UP-Norfolk Southern merger will be the first test of STB rules enacted in 2001 requiring Class I railroads to demonstrate that major mergers enhance, rather than merely preserve, competitive shipping options. By Chris Baltimore Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
DHL signs 10‑year SAF offtake deal with Bahrain project
DHL signs 10‑year SAF offtake deal with Bahrain project
London, 13 May (Argus) — German logistics firm DHL Express said it has signed its first sustainable aviation fuel (SAF) offtake deal in the Middle East, securing supply from a Bahrain project by Dubai-based developer SAF One from 2028. DHL will take 25,000 t/yr of unblended SAF for 10 years, or 250,000t in total. It will act as an anchor offtaker, providing demand certainty as the project progresses toward construction and start-up from 2028. This commitment marked "an important step" toward bringing the facility on line, said SAF One co-founder and chief executive Deepak Munganahalli. Earlier this year SAF One secured $30mn investment and hired an engineering partner to start building a hydrotreating plant in 2026 at an unnamed Middle East location — now seemingly confirmed as Bahrain. DHL will allocate the SAF globally through a book-and-claim system, enabling its customers to reduce Scope 3 emissions even on routes not directly fuelled with SAF. DHL used 10pc SAF in 2025 from suppliers in Europe, the US, and Asia-Pacific, and has a target of using 30pc SAF by 2030. The firm has scaled SAF through a business-to-business model, where its customers willingly absorb SAF premiums in exchange for emissions reductions. Passenger airlines can struggle to pass higher fuel costs to travellers. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Methanol projects dominate Australia H2 subsidy scheme
Methanol projects dominate Australia H2 subsidy scheme
Sydney, 13 May (Argus) — The Australian Renewable Energy Agency (Arena) has announced a shortlist of projects for the second round of its Hydrogen Headstart subsidy scheme, with methanol facilities making up four of the seven. The shortlisted projects must submit full applications by early September, Arena said on 13 May, to win part of the A$1bn ($723.7mn) in funding available, which was reduced by A$1bn in last night's federal budget . Arena's selections represent 2,180MW of capacity, compared with the 3,394MW in the first round's shortlist . Four of the projects plan to manufacture methanol, the largest being the Bell Bay Powerfuels project in Tasmania state, which is aiming for first output in 2029 . Perdaman's 750MW Project Helios will connect to the company's 2.3mn t/yr Project Ceres urea plant in the Pilbara region of Western Australia. The firm started constructing its 30MW solar farm in March. Helios is expected to reduce Perdaman's carbon emissions by 43,800t of CO2 equivalent (tCO2e)/yr. Australian low-carbon fuels firm HAMR Energy's Portland Renewable Fuels Project was also on the list. The developer of the 220MW project received South Australia state government backing for a 140mn litres/yr sustainable aviation fuels (SAF) plant in March. Applications for the shortlist opened in October last year and follows consultations last year , after the first round of the scheme failed to award the full A$2bn initially offered, instead awarding the 900,000 t/yr Murchison Green Hydrogen project and the 4,700 t/yr Hunter Valley Hydrogen Hub with A$814mn and A$432mn, respectively, in 2025. Murchison has been shortlisted for its stage 1B, add a further 500MW of subsidised output to the initial stage meaning a total of 1.5GW capacity, while 3GW of electrolysis is ultimately planned for the project. The Headstart production credit pays the manufacturer per unit of production over a 10-year period of operations, to help bridge the gap between cost of making renewable hydrogen and market prices. By Tom Major and Susannah Cornford Hydrogen Headstart round 2 projects Applicant Project Title Electrolyser capacity (MW) State Hydrogen End Use Bell Bay Powerfuels Bell Bay Powerfuels 300 Tasmania Methanol European Energy Australia South East Queensland Power-to-X Project 150 Queensland Methanol HAMR Energy Portland Renewable Fuels Project 220 Victoria Methanol and SAF HIF Asia Pacific HIF Tasmania e-Fuel Facility 140 Tasmania Methanol Murchison Hydrogen Renewables Murchison Green Hydrogen Project Stage 1B 500 Western Australia Ammonia Perdaman Commercial Developments Perdaman Helios (Karratha): Decarbonising Fertilisers 750 Western Australia Urea Summit Hydro Gladstone Green Hydrogen Project 120 Queensland Alumina Source: Arena Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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