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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Panama Canal sees El Nino slowing transits next year
Panama Canal sees El Nino slowing transits next year
New York, 4 June (Argus) — The Panama Canal Authority (ACP) does not anticipate the expected 2026 El Nino weather phenomenon to materially impact vessel transits at the Panama Canal through the end of the year, but it could create the need for water-saving measures in 2027, according to an update it shared in late May. The same weather pattern was responsible for the 2023/2024 drought that encouraged the ACP to enact draft restrictions from early 2023 that severely reduced transits via the freshwater canal. This ultimately shifted the Panama Canal from its traditional first-come, first-serve basis to its current pre-booked transit slot/supplemental auctions model. But the timeline in 2026 is dissimilar to 2023, a year in which the ACP had already enacted its first draft restrictions by 1 March 2023. These were focused on the largest and newest of the transit locks that lift vessels from the lower sea level into the higher freshwater canal, the Neopanamax locks. Draft restrictions mean vessels need to carry less cargo to sit higher in the water, allowing the ACP to further retain freshwater within the waterway overall. The draft restrictions for these larger vessels steadily increased that year as freshwater levels there steadily declined. But focusing on restricting larger vessels ultimately allowed the ACP to avoid restricting draft for the smaller vessels via the Panamax locks that make up 70pc of all transits via the Panama Canal. That retention of freshwater is important during droughts, because the man-made Panama Canal itself is responsible for providing over 50pc of the country's population with potable water, according to the ACP. The ACP reevaluated its operational capacity at the start of the rainy season, which typically begins in May, lasts through June and replenishes steadily declining water levels during the dry season. "Current data does not forecast the need for transit restrictions through 31 December 2026", the ACP said. "History indicates that the most pronounced impacts of moderate or strong El Nino events tend to be reflected more clearly in the subsequent year. Accordingly, operational projects for 2027 are already being developed." The ACP highlighted four water-saving measures that had contributed to higher average water levels in the man-made lakes, Gatun and Alhajuela, that feed the freshwater canal enacted in December 2025 alongside a dry season that was "the wettest on record since 1950". These included doubling up on small ships into a single lane when raising them from sea level, use of water-saving basins via the larger Neopanamax locks to effectively recycle some water from exits that would otherwise drain out to the sea, utilizing "interior gates" within the lanes of the locks for vessels smaller than the total size of those lanes to raise efficiency of water usage and the temporary suspension of hydroelectric power generation at Gatun lake, according to the ACP. El Nino? Or 'El Hombre' The severity of weather phenomena like El Nino are famously difficult to predict with accuracy, and the 2026 El Nino weather event, if it does occur, could be on par with the 2023 event or even stronger, according to World Meteorological Association (WMO) and the National Oceanic and Atmospheric Administration (NOAA) data. The WMO estimates an 80pc chance of El Nino developing between June-August 2026, with "near or above" a 90pc chance of persisting until at least November. "Although some uncertainty remains about El Nino peak strength and timing, most forecast models suggest it will be at least moderate — and possibly strong," the WMO said. Meanwhile, the NOAA projected in May 2026 that between November, December and January the El Nino had a 37pc chance of hitting "very strong", the highest strength level assessed for the weather pattern. This marked the plurality of all options, with the next highest being "strong" at 30pc probability. The WMO had previously described the 2023-2024 El Nino as peaking at "one of the five strongest on record". A return to this level of severity could upend plans by the ACP of avoiding draft restrictions at the Panama Canal through the remainder of 2026, which would have knock-on effects on shifted global trade patterns. Asian buyers have increasingly relied on Atlantic basin supply, and Panama Canal transits, for energy commodities in the wake of the closure of the strait of Hormuz by Iran. Disrupted Panama Canal transits will create strong upward pressure on freight rates across segments, especially if Mideast Gulf flows remain largely cut-off from the global market when drought again grips Central America. By Ross Griffith Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Maruti Suzuki launches India’s first flex-fuel car
Maruti Suzuki launches India’s first flex-fuel car
Mumbai, 4 June (Argus) — Indian automaker Maruti Suzuki launched its first flex-fuel vehicle (FFV) in Delhi today, to support the country's aims to expand its ethanol blending programme beyond 20pc (E20). The newly launched flex-fuel Wagon R ZXi MT can run on gasoline as well as a variety of ethanol blends of up to 80pc ethanol. India currently mandates 20pc ethanol blending and has recently unveiled plans to raise blending levels, proposing the introduction of E85 and E100 sales. The Bureau of Indian Standards in May introduced specifications for higher ethanol blends, covering E22, E25, E27 and E30 fuels. The move follows repeated calls from India's ethanol lobby to promote FFVs, which are required to run higher ethanol blend ratios above 20pc. Most cars in India manufactured from 2023 onwards can run on E20, but there is currently no blanket approval from original equipment manufacturers (OEMs) for blends beyond E20. The launch is a historic milestone, India's minister for road transport and highways Nitin Gadkari said. More models will be launched, he added, suggesting introducing E100 ethanol pumps. Further rollouts of such vehicles will depend on customer demand and the success of the current model, a company executive said. By Nikhil Sharma Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
BHP trials Australian tallow biodiesel for biobunkering
BHP trials Australian tallow biodiesel for biobunkering
Sydney, 4 June (Argus) — Australian tallow-based biodiesel was blended in Singapore for the first time and used onboard a bulk carrier, as part of Australian mining group BHP's pilot program aimed at reducing maritime emissions. Mining giant BHP trialled the fuel in May, using a 100pc biodiesel blend comprising 50pc Australian-origin tallow methyl ester (TME) and 50pc used cooking oil methyl ester (Ucome), the firm said on 3 June. The blend is expected to deliver around a 79pc reduction in lifecycle greenhouse gas (GHG) emissions per voyage compared with conventional very low-sulphur fuel oil. The biodiesel was used onboard the Berge Lyngor , an iron ore carrier that departed Port Hedland, Western Australia, for China on 17 May and partially discharged its cargo on 31 May, according to Kpler data. Around 500t of TME was sourced from producer Just Biodiesel's 60mn litre/yr plant on the New South Wales–Victoria border and exported to Singapore's bunkering hub in approximately 25 isotanks by biofuel supplier HAMR Energy, Just Biodiesel told Argus today. Japanese trading firm Mitsui's Singapore energy trading arm supplied the Ucome component and carried out blending. The project was co-funded by the Maritime and Port Authority of Singapore under the Maritime Innovation and Technology Fund. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Air France-KLM flags secure summer jet fuel supply
Air France-KLM flags secure summer jet fuel supply
London, 3 June (Argus) — Air France-KLM said jet fuel supply is secure for the peak summer travel season, becoming the latest European airline to signal stable availability after earlier concerns over disruptions linked to the closure of the strait of Hormuz. "All indicators are positive for the July and August peak travel season" in terms of availability at its French and Dutch airport hubs, chief executive Benjamin Smith said. The company is "continuously monitoring" fuel supply at destination airports but has committed to maintaining its summer flight schedule. Other European airlines have delivered similar messages in recent weeks. Last week, Germany's Lufthansa said there were "no signs" of supply risks at its six European hubs — Frankfurt, Munich, Zurich, Vienna, Brussels and Rome. Ryanair chief executive Michael O'Leary has said supply appears secure until September, while Jet2 said it does not expect disruption to its summer schedule. The improved sentiment reflects a more balanced supply picture. Higher regional refinery output, stockdraws and imports from the US and Nigeria have helped offset the loss of Middle Eastern supply following the effective closure of the strait of Hormuz, easing earlier fears of jet fuel shortages in Europe. European jet fuel prices have fallen in response, staying below $1,200/t for almost two weeks — the lowest level since the start of the US-Iran conflict, although still around 50pc higher than pre-war levels. Supply remains tight, however. Unplanned refinery outages could quickly disrupt supply to individual airports, while the ongoing lack of flows through the strait of Hormuz means the global jet fuel market remains undersupplied. Europe must continue to compete with other regions for imports, and market participants expect prices to remain elevated for several months. By Amaar Khan Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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