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.
Pakistan loses EU GSP+ ethanol status
Pakistan loses EU GSP+ ethanol status
London, 20 June (Argus) — The European Commission today suspended Pakistan's Generalised Scheme of Preferences Plus (GSP+) status for imports of ethanol. The removal is effective from today, 20 June. A request was lodged in May last year by France, Germany, Spain, Italy, Hungary and Poland, who sought to activate Article 30 of the GSP Regulation, arguing that ethanol coming from Pakistan since 2022 has "caused a serious disturbance to the Union ethanol market". Under Article 30, the commission can "adopt an implementing act in order to suspend the preferential arrangement in respect of the products concerned". Pakistan was granted GSP+ status in 2014, and this expired at the end of 2023. The status was temporarily extended until 2027. The GSP+ grants reduced-tariff or tariff-free access to the EU for vulnerable low- and lower- to middle-income countries that, according to the EU, "implement 27 international conventions related to human rights, labour rights, protection of the environment and good governance". It fully removes custom duties on two-thirds of the bloc's tariff lines in Pakistan's case, including ethanol. Pakistan is a major supplier of industrial-grade ethanol to Europe, but it does not export fuel-grade ethanol. According to market participants, this is because production facilities in the country lack sustainability certifications such as the International Sustainability and Carbon Certification (ISCC) that are required for biofuels to qualify under the EU Renewable Energy Directive (RED) targets. Fuel-grade ethanol was not included in the bloc's measures. Several Pakistani market participants were hopeful the GSP+ status will remain in place, which has continued to support ethanol exports from the country to the EU ( see table ). But uncertainty has weighed on demand from Europe recently, suppliers said. A participant told Argus that Pakistani sellers may look to offer more into Africa to soften the drop in demand. Some European suppliers anticipated this outcome, and have already stopped importing from Pakistan. European renewable ethanol association ePure expressed concern about the decision to exclude fuel ethanol from the scope of the measures, noting this could open the door to unintended loopholes and weaken the overall effect of the safeguard efforts. By Evelina Lungu and Deborah Sun European ethanol imports from Pakistan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Indonesia turns down UK biodiesel subsidy review
Indonesia turns down UK biodiesel subsidy review
Singapore, 17 June (Argus) — The government of Indonesia has formally declined to participate in UK government body the Trade Remedies Authority's (TRA) ongoing transition review of countervailing duties on biodiesel imports from Indonesia. Indonesia's trade ministry informed the TRA in a letter dated 21 May 2025 and uploaded to the TRA's public case file on 16 June that Indonesia has not exported biodiesel to the UK and does not anticipate doing so because of increasing domestic demand. Consequently, Indonesia will not submit a questionnaire response or engage further in the review. The TRA initiated the review (case TS0065) in December to assess whether existing countervailing duties on Indonesian biodiesel should continue now that the UK has left the EU. The duties were imposed by the EU and remained in place in the UK after its departure from the bloc. Indonesia emphasised that its current focus is on ongoing litigation at the World Trade Organisation concerning similar EU measures. The government expressed hope that the UK's investigation would be conducted fairly and transparently, potentially leading to the termination of the review. The TRA's final decision on the matter is still pending. By Shien Ern Tan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US Senate bill would cut extra subsidy for SAF
US Senate bill would cut extra subsidy for SAF
New York, 16 June (Argus) — The US Senate tax-writing committee is proposing cutting a tax credit's extra subsidy for low-carbon jet fuels over road fuels and introducing less-restrictive limits on foreign biofuel feedstocks, major shifts from current law and the House version of the bill. Republicans have planned to use a far-reaching budget bill this year to alter climate policies from the Inflation Reduction Act, which created a new tax credit for clean fuel producers known as "45Z". The House passed its version of the bill last month, which would have kept the general structure of that incentive — upping fuel subsidies as emissions fall — and extended the incentive by four additional years through 2031. The credit took effect this year. But the Senate Finance Committee in draft language released Monday floated its own changes, suggesting that Republican lawmakers are not yet aligned on how to alter the subsidy just weeks before President Donald Trump has pushed lawmakers to pass the major bill into law. The Senate draft proposes offering a maximum subsidy of $1/USG for all fuels based on their carbon intensities starting next year. The House made no changes to that part of the law, which currently offers road fuels up to $1/USG and sustainable aviation fuel (SAF) up to $1.75/USG, plus inflation adjustments for all types of fuel. That change would reduce the incentive's upfront costs — potentially alleviating concerns among some conservative lawmakers that the bill would add to the budget deficit — but could reduce alternative fuel availability for airlines and upend many refiners' plans to convert more renewable diesel output to SAF. "We have always supported tech-neutral biofuel incentives and at first blush the Senate draft seems to be moving toward making 45Z truly tech-neutral," said David Fialkov, executive vice president of government affairs at the National Association of Truck Stop Operators, which had opposed treating aviation fuels differently than road fuels. The Senate proposal would also scrap a provision in the House bill that starting next year would restrict eligibility to fuels derived from North American feedstocks. Instead, the Senate committee has proposed cutting subsidies for fuels from foreign feedstocks by 20pc while still allowing them some credit. That change would provide more flexibility than the House bill to refineries that have scaled up biofuel production in recent years by relying on foreign inputs like used cooking oil and tallow. The Senate draft is just a proposal and could be changed. Both bills notably would extend 45Z and prevent regulators from considering indirect land use change emissions. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US biofuel feed prices jump on blending plan
US biofuel feed prices jump on blending plan
Houston, 16 June (Argus) — Prices for US biofuel feedstocks have risen sharply since the US Environmental Protection Agency (EPA) late last week proposed ambitious biofuel blending targets for the next two years along with lower incentives for using foreign feedstocks. Futures prices for soybean oil, the most widely used input for biodiesel production, have led the feedstock gains as the market prices in potentially higher demand. The Nymex front-month contract for soybean oil rose by 6.3pc on 13 June and by an additional 7.8pc on Monday to 54.6¢/lb, the highest since October 2023. The proposed targets , released on 13 June, would mandate that an equivalent amount of 5.61bn USG of biomass-based diesel be blended in 2026 and 5.86bn USG in 2027. The proposed volumes exceeded most market expectations and industry requests of 5.25bn USG and were significantly higher than the current-year mandate of 3.35bn USG, fueling expectations for increased biofuel feedstocks demand. In addition, domestic feedstocks may face reduced competition from foreign feedstocks under the proposal, which would cut federal Renewable Identification Number (RIN) credit generation by 50pc for imported biofuels or fuels produced from foreign feedstocks. Biomass-based diesel D4 RINs for the current year rallied Monday morning, trading between 127-132¢/RIN, up significantly from Friday's close of 109¢/RIN. Used cooking oil (UCO) railcar volumes to the US Gulf coast were reported trading at 59¢/lb early Monday morning, a 3.5pc jump from Friday's closing price of 57¢/lb, with additional selling interest emerging in the 60s¢/lb. UCO offers for volumes into California were noted in the high 60s¢/lb, up from last week's close in the high 50s¢/lb. Distillers corn oil (DCO) fob truck volumes in the Midwest traded at 61¢/lb on Monday morning, reflecting a 9pc jump from Friday's close of 56¢/lb. Poultry fat fob truck volumes in the southeast were offered in the low 50s¢/lb, up from last week's closing levels in the low 40s¢/lb, but buying interest has not emerged at those levels. Activity for other renewable feedstocks remains limited for now, but market participants anticipate increased trading later this week, driven by the recent proposal and gains in futures markets. The EPA proposal is currently in an open comment period, with a public hearing scheduled for 8 July. By Payne Williams and Jamuna Gautam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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