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UK renewable fuel demand flat in 2025, RTFC slumps

  • Market: Biofuels
  • 24/07/26

Overall UK renewable fuel consumption remained steady in 2025, but blending of biodiesel and hydrotreated vegetable oil (HVO) into fossil diesel declined, according to the fifth provision of 2025 statistics released from the Department of Transport (DfT), which further updated figures from the fourth 2025 provision.

The Department for Transport's fifth RTFC report showed renewable fuel use was steady at 3,410mn litres in 2025. Bioethanol increased to 1,582mn litres from 1,486mn a year earlier, dominating the renewable fuel mix at 46pc of total renewable fuel supplied. Biodiesel fell to 719mn litres from 830mn, accounting for 21pc of total renewable fuel supplied, while HVO declined to 574mn litres from 788mn, 17pc of total renewable fuel supplied.

Fossil fuels made up 93pc of all fuel supplied, with diesel at 54pc, gasoline at 34pc and low-sulphur gasoil at 5pc. Renewable fuels accounted for 7pc of total fuel supplied in the UK in 2025, mostly bioethanol at around 3pc, totalling 3,165 units, followed by biodiesel and HVO at around 1pc.

RTFC issuance fell to 5,665mn in 2025 from 6,676mn in 2024. The decline may reflect generally lower biofuel prices relative to tickets in 2025, which encouraged compliance through biofuel consumption rather than purchasing tickets. This was partly brought on by imports of cheap US biofuels into the UK as the UK government avoided the imposition of countervailing duties.

Of the total 5,665mn RTFCs, 5,055mn were from double-counting feedstocks. Within this category, the dominant category was Other RTFCs at 4,800mn, down from 5,652mn in 2024. Crop-based issuance ranked second at 602mn, down from 882mn units a year earlier. Development fuel RTFCs — generated from fuels such as hydrogen and recycled carbon fuels — rose to 263mn units from 142mn in 2024.

By Kawtar Rettab

Renewable fuel supply in UK (provisional)mn l equivalent
Total fuel supplied% of total renewable fuel
Fuel2025202420252024
Biodiesel (methyl ester)71983021%22%
Blend rate into diesel*2.71%3.07%
HVO57478817%21%
Blend rate into diesel*2.16%2.91%
Ethanol1,5821,48646%39%
Blend rate into petrol*9.47%9.11%
BiobutaneN/A1N/A0%
Bio-CNG1431204%3%
Bio-LNG112783%2%
Biomethanol49681%2%
Biopropane25181%0%
Off-road biodiesel15130%0%
Pure bio oil010%0%
Total
Total renewable fuel supplied (excluding SAF)3,4103,410
Renewable fuel blend rate into fossil fuel*7.49%7.46%
Total fossil fuel45,51245,689
*Blending rates are calculated by comparing the biofuels portion to the fossil fuel volume, not of the total of fossil fuel plus biofuel
Department for Transport (DfT)
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29/07/26

Indonesia sets biodiesel production volumes for B50

Indonesia sets biodiesel production volumes for B50

Singapore, 29 July (Argus) — The Indonesian ministry of energy and mineral resources (ESDM) has today allocated production volume targets to domestic biodiesel producers to implement its 50pc fossil diesel-biodiesel blend (B50) mandate, according to a document seen by Argus . ESDM has allocated a total of 16.7mn kilolitres (kl) across 26 biodiesel producers for 2026 to fulfill the B50 mandate, up from 15.6mn kl allocated at the start of the year for its original B40 target. Biodiesel producers had been awaiting updated volume allocations under the new B50 target for most of July , despite the mandate officially taking effect at the start of the month . Of the total allocated volume, the ministry has instructed producers to supply 8.2mn kl of subsidised biodiesel volumes to the public service obligation (PSO) sector — targeted at public transportation, public services, agriculture and micro-enterprises. The remaining 8.5mn kl must be supplied to the non-PSO sector — including commercial industries, private transport, general mining, manufacturing, and power plants. Indonesian plantation fund management agency BPDPKS funds the price gap between biodiesel and fossil gasoil using revenue from export levies on palm oil and related products, for biodiesel delivered to the PSO sector. It delivers the funds to biodiesel producers after they supply biodiesel to fuel distribution companies at the cost of regular gasoil. Fuel distributors then supply blended biodiesel and gasoil to consumers. By Malcolm Goh Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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California refinery closures spur fuel plan debate

28/07/26
News
28/07/26

California refinery closures spur fuel plan debate

Houston, 28 July (Argus) — California officials face mounting pressure to maintain fuel reliability as planned refinery closures tighten supplies and increase reliance on imports, even as the state pursues its climate and transportation electrification goals. The California Air Resources Board (CARB) and the California Energy Commission (CEC) released a draft transportation transition plan in May. While the plan outlines recommendations, California still needs a more detailed roadmap to balance fuel supply demand with the state's climate goals, according to panelists who spoke during a 23 July webinar hosted by the Climate Center, an environmental non-profit. A key question for the state is to reexamine what to electrify and when, and which sectors should switch next to biofuels to make the best use of limited renewable power and fuel supplies under current conditions in California, said Jeremy Martin, director of fuels policy for the Union of Concerned Scientists. Transportation is the largest emitting sector in California's economy, accounting for 133.7mn metric tonnes (t), or 37.1pc, of emissions in 2023, data show from the latest state greenhouse gas inventory. The lion's share of these emissions is from passenger vehicles with 101.9mn t, or 28.3pc. California aims to electrify its vehicle fleet, targeting 100pc of in-state sales of zero-emission passenger vehicles and trucks by 2035. "The market is pretty solidly in the direction of battery-electric vehicles, and we don't see any change in that direction at this point," Quentin Gee, CEC energy assessment division manager, said during the panel. But some sectors may be more difficult to electrify because of cost constraints and the time required to add renewable power capacity. Sustainable aviation fuel (SAF) could help reduce emissions from aviation while directing limited renewable electricity supply toward passenger vehicles and trucks, Martin said. "If you only have so much renewable energy that you can scale up, it is a lot more important to convert the cars and trucks to electric vehicles than it is to shift the planes," he said. California has done similar fuel pivots with the adoption of renewable diesel which serves as a "drop-in" replacement for conventional diesel. While gasoline demand is expected to continue falling over time in the state, jet fuel demand is not projected to follow the same course, Gee said. The closures of two refineries in the state in the past year cut 17pc of California's refining capacity, leaving the state increasingly reliant on imports to meet demand. This need to maintain fuel supply availability has lead the CEC to eye the potential for alternative fuels like SAF and ethanol fuel blends to maintain availability for different transportation sectors which use less fossil fuel, Gee said. But if in-state production of these fuels does not scale quickly, it could again leave California reliant on the availability of imports, according to the CEC draft. California will also have to weigh any transition against the interplay of available biofuel feedstocks, the state's low-carbon fuel standard and federal programs and incentives. Federal biofuel tax incentives, such as the 45Z credit, which prioritizes North American feedstocks, have prompted producers to shift from global to domestic supply chains where possible to capture the credit in their 2026 filings. While advocates argue the state must quickly decide its future plans, this likely will happen under a new governor, with governor Gavin Newsom (D) termed-out after this year. The CEC closed public comment on the transportation fuels transition plan earlier this month, though agency staff could not confirm when it would release a final report. The plan is one of several state policy documents used to shape California's path toward its climate and energy goals. Another is the scoping plan prepared by CARB, which outlines how the state aims to achieve net-zero emissions by 2045. CARB released its current scoping plan in 2022, but will not release the next update until 2027. The CEC also plans to release its transportation fuels assessment later this year. The report will examine conditions in California's fuel markets and evaluate policy options to improve fuel reliability and market stability during the transition away from fossil-based fuels. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

EU ethanol imports drop in May

27/07/26
News
27/07/26

EU ethanol imports drop in May

London, 27 July (Argus) — Imports of undenatured ethanol into the EU fell by 15pc on the month and by 12pc on the year in May. The price of average 75pc greenhouse gas (GHG)-saving crop-based ethanol fell from a high of €966/m³ on 1 May to €727/m³ on 29 May. The US held its position as the EU's largest undenatured ethanol supplier ( see table ), although the total amount supplied was down by 31pc on the previous month at 19,906t. But imports from the US were more than double on the year. Paraguay and Canada rounded out the top three, pushing out April's second and third largest suppliers, Peru and Guatemala. The Netherlands remained the EU's largest importer of undenatured ethanol with 50,002t. This is down by 34pc on the month, and by 29pc on the year. France stayed as the EU's second largest importer with 14,714t, which is 47pc higher than in April. Italy rose to become the third largest importer. UK imports of undenatured ethanol rose by more than 50,185t to 86,818t in May, with just over 95pc of that coming from the US. By Toby Shay EU-27 ethanol imports from outside EU t May 26 Apr 26 ±% mth/mth May 25 ±% yr/yr YTD YTD 2025 ±% YTD Imports by origin US 19,906 28,839 -31 8,516 134 94,458 64,099 47 Paraguay 11,851 n/a n/a n/a n/a 11,858 n/a n/a Canada 11,171 12,756 -12 9,491 18 56,726 47,313 20 Other origins 55,217 74,494 -26 92,937 -41 275,239 358,913 -23 Imports by destination Netherlands 50,002 75,588 -34 70,395 -29 273,220 244,405 12 France 14,714 9,981 47 6,548 125 38,329 41,517 -8 Italy 6,822 3,957 72 9,480 -28 19,091 36,185 -47 Other destinations 26,607 26,564 0 24,522 9 107,642 148,218 -27 Total 98,145 116,090 -15 110,944 -12 438,282 470,325 -7 — GTT Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Canada SAF growth plan highlights competitiveness gaps

24/07/26
News
24/07/26

Canada SAF growth plan highlights competitiveness gaps

Calgary, 24 July (Argus) — Canada's policy environment is not yet competitive enough to grow a domestic sustainable aviation fuels (SAF) industry, according to Transport Canada's latest growth plan. The Sustainable Aviation Fuels Blueprint, developed with Deloitte and the Sustainable Aviation Task Force alongside the Canadian Council for Sustainable Aviation Fuels (C-SAF), sets out a pathway toward achieving 10pc SAF use by 2030 and net-zero aviation emissions by 2050. However, the report identifies high production costs, limited access to imports, and insufficient policy support as key barriers, with producers favoring US projects because of stronger incentives. Most of the SAF produced worldwide is absorbed by the European Union and the US, leaving Canada competing for scarce imports. Canadian policy does not yet create a positive operating margin or durable demand signal, so producers favor developing projects in the US, which has 45Z tax credits to help support the industry. Despite several federal incentive programs such as the retooled C$1.5bln ($1.1bln) Clean Fuels Fund and Clean Fuel Regulations credit framework, Canada has no commercial scale SAF production. A series of project announcements totaling more than 1bn litres of annual production has yielded no final investment decision to date. The seven-pillar action plan points to several levers that could reshape the investment calculus in Canada. Chief among them is exploring contracts-for-difference structures like the Netherlands' SDE++ program or the UK's Low Carbon Contracts Company, which guarantee a strike price and de-risk first-of-a-kind facilities. A near-term win could come from regulatory reform rather than new spending such as raising co-processing blend limits from 5pc to as much as 30pc, which would let existing refineries produce SAF alongside conventional fuel without major new capital investment. Some provinces, such as British Columbia, have already mandated a low carbon fuel standard (LCFS) in a SAF blending mandate starting in 2028 with a 1pc requirement and up to 3pc by 2030, as well as a production incentive with the Low Carbon Jet Fuel Incentive Program providing cash and LCFS carbon offsets. The report highlights canola, agricultural residues, and forestry residues as Canadian feedstock advantages. But canola-based SAF is ineligible for the European market mandates, which is pushing a North America-first strategy. The report also calls for a national SAF demand forecast and a book-and-claim framework to let corporate buyers purchase SAF without needing physical uplift, a mechanism smaller carriers have said they need to compete with larger carriers like Air Canada and WestJet for scarce global cargo. By Adam Battistessa Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Paraguay cuts biodiesel blend to 7pc after pushback

24/07/26
News
24/07/26

Paraguay cuts biodiesel blend to 7pc after pushback

Sao Paulo, 24 July (Argus) — Paraguay's industry and commerce ministry (MIC) has cut the country's mandatory biodiesel blend back to 7pc, reversing course four days after an 8pc mandate entered into force. Under a resolution published on Friday, the minimum biodiesel blend in diesel will be set at 7pc from 24 July through 31 December 2026, although the MIC said compliance checks will not begin for 60 days. The mandate will rise to a minimum of 8pc from 1 January 2027. The ministry said the change follows assessments of "new factors and studies" and aims to balance economic, quality and environmental considerations. The latest resolution represents a compromise between the government's biofuels objectives and concerns raised by downstream fuel suppliers. Fuel distributors and blenders have been arguing for weeks that most vehicle manufacturers represented in Paraguay's fleet do not recommend biodiesel blends above 7pc. The MIC's previous resolution increasing the mandatory blend to 8pc came into force on 20 July and was anchored in a broader strategy to displace imported fuels with domestically produced biofuels while also stimulating the local vegetable oils and biofuels industry. Fuel retailers and blenders said they repeatedly met with MIC officials before the June decision and warned that higher blend rates could pose technical risks for part of the country's diesel fleet. They said those concerns were largely disregarded after MIC decided on the 8pc minimum blend. Distributors have argued that increasing the blend above 7pc could raise the risk of engine and fuel system damage in vehicles that were not designed or certified for higher biodiesel concentrations. Higher blends could also increase maintenance costs by requiring more frequent replacement of components such as fuel filters, they said. By Flavia Alemi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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