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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Brazil waste oil mandate could raise biodiesel costs
Brazil waste oil mandate could raise biodiesel costs
Sao Paulo, 11 June (Argus) — The mandatory use of waste oils and fats (WOFs) in the production of biodiesel in Brazil is likely to raise product costs, considering the limited supply of these raw materials and competition from products with higher added value, such as sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO). In May, Brazil's mines and energy ministry MME published a decree mandating the use of 1pc WOFs in the production of biodiesel, SAF and HVO starting 1 January 2028. Until then, the use of these raw materials is voluntary. Per the decree, the minimum percentage of WOFs will be reviewed every three years, based on factors such as the available quantity of the raw material, advances in traceability mechanisms, the expansion of collection infrastructure and increased pretreatment capacity. In Brazil, the market for used cooking oil (UCO) — one of the main types of WOFs — remains unregulated and lacks consolidated official data. Estimates of collection levels in the coming years vary widely, with projections ranging from 500,000 metric tonnes (t)/y to 2mn t/y, according to market participants. In 2025, biodiesel production used approximately 100,000t of UCO. When soybean oil prices are high, WOFs serve as an important alternative feedstock for biodiesel production, especially for non-vertically integrated plants. In 2025, for example, the average price of UCO fob Sao Paulo, with 3.5pc acidity was R5,438($1.051)/t. The price of soybean oil cif Sao Paulo stood at R5,808/t during the same period, according to Argus indicators. The mandatory use of WOFs may alter this trend, with increased demand from the biodiesel, SAF and HVO industries driving up the price of UCO and, consequently, the final product. The use of WOFs in biodiesel production is also expected to impact the glycerin market, which, because some countries accept only the byproduct derived from virgin vegetable oils, will need to diversify its consumer base. The Brazilian biofuels industry considers the deadline for the mandatory adoption of 1pc OGRs in biodiesel production to be insufficient, given the necessary adaptations required at plants that currently operate exclusively with virgin vegetable oils. A major biodiesel producer that acquired existing WOF plants in the Brazilian market told Argus that it has been involved for over three years in projects to adapt these industrial units. It considers it unfeasible for small-scale plants to complete all the required adjustments in just over a year and a half. The MME stated that the measure takes into account the sector's varying technological realities. The gradual implementation is specifically intended to allow for industrial adaptation and the expansion of processing capacity for these raw materials. Traceability initiatives Brazil's UCO market is maturing but, to date, lacks consolidated traceability projects. According to the MME, the period of voluntary use of WOFs was structured to allow for the sector's gradual adaptation, the development of collection and processing chains and the advancement of traceability mechanisms. In this context, Brazil's animal recycling association Abra is working to create a specific national classification of economic activities (CNAE) for UCO. The organization is also developing an app designed to record information on the collection and movement of the raw material, with the aim of reducing traceability gaps and increasing transparency throughout the production chain. Meanwhile, Brazil's state-controlled oil company Petrobras recently announced an investment of R23mn in initiatives for the collection of animal by-products intended for the production of biofuel. The funds will be directed toward projects by non-profit organizations to improve the logistics and infrastructure of collection points, including the provision of equipment for filtering and temporary storage of the product. By Natalia Dalle Cort Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
BP confirms shift to two‑segment structure
BP confirms shift to two‑segment structure
London, 9 June (Argus) — BP confirmed today that it will reorganise its business into two segments — Upstream and Downstream — from 1 July. The Upstream segment will combine BP's oil and gas regions, covering exploration, development and production. It will also include upstream joint ventures, alongside the company's renewable natural gas and carbon capture and storage businesses. The Downstream segment will include refining, terminals and pipelines, as well as BP's mobility and convenience retail operations. It will also cover biofuels, aviation and hydrogen, and include the company's remaining 35pc stake in its Castrol lubricants business. BP's Supply, Trading & Shipping function will operate across both segments, supporting "delivery and value creation across the integrated system", the company said. Its renewable power businesses — including solar and offshore wind, where BP is pursuing an asset-light model — will sit within the Technology function. The reorganisation was trailed shortly after new chief executive Meg O'Neill joined the company in April . Focusing BP around two distinct segments "is an important step in accelerating delivery" and will "reduce complexity and strengthen execution", O'Neill said today. The move brings BP's structure closer to that of US peers Chevron and ExxonMobil. O'Neill previously spent more than two decades at ExxonMobil. BP is currently organised into three main segments — Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products — alongside an Other Businesses and Corporate segment. The company said the new structure will clarify accountabilities and enable "faster, more effective" decision-making. O'Neill has previously said that moving BP's refining into a dedicated downstream segment, from the largely upstream Production & Operations business, would allow leadership to better "maximise value from the front of the refinery all the way to the end-customer". BP said Gordon Birrell, currently executive vice-president of Production & Operations, will lead the new Upstream segment. Customers & Products head Richard Harding will serve as interim head of Downstream until a permanent executive vice-president is appointed. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
India’s E85 debut spurs calls for flex-fuel vehicles
India’s E85 debut spurs calls for flex-fuel vehicles
Mumbai, 9 June (Argus) — India's launch of E85 gasoline has prompted calls from industry participants for faster rollout of flex-fuel vehicles (FFVs) and expanded refuelling infrastructure to support higher ethanol use. Oil minister Hardeep Singh Puri launched E85 at an Indian Oil retail outlet in New Delhi on 5 June. It can be used in FFVs compatible with blends from E20 to E100. The launch follows Indian automakers introducing their first FFVs for higher ethanol blends last week. Maruti Suzuki unveiled India's first flex-fuel car on 4 June , while Hero MotoCorp launched its Splendor+ and HF Deluxe motorbikes on 3 June, the first bikes in the country able to run on blends of up to E85. Indian Oil's general manager for alternative energy, Bibhudatta Rout, said the country lacks sufficient FFVs but said the E85 launch would support future expansion of high-ethanol mobility. The government plans to offer E85 at 48 public-sector fuel stations, expanding to 500 outlets by the end of this year and 5,000 by 2027. E85 is priced at a 20 rupees/litre discount to E20. Market participants expect faster FFV rollout. Fuelbrains director Sachin Malusare said "faster adoption will be the key to ethanol consumption as well as energy independence." Industry participants have also highlighted infrastructure constraints. Shree Renuka Sugars director Atul Chaturvedi said E85 should initially be rolled out near ethanol-producing centres and stressed the need for sufficient dispensing capacity. India's ethanol output is concentrated in sugar-producing states, notably Uttar Pradesh and Maharashtra. India has accelerated its fuel blending programme in recent months and is progressing towards sustainable aviation fuel (SAF) blending. The government said vehicles using E85 could reduce lifecycle greenhouse gas emissions by about 61pc compared with conventional gasoline vehicles. Since 2014-15, the ethanol blending programme has saved 1.84 trillion rupees ($18.4bn) in foreign exchange. In April, India proposed allowing higher ethanol blends up to E85 and E100 through changes to vehicle rules, alongside biodiesel blends of up to 100pc (B100). New fuel standards introduced in May cover blends including E22, E25, E27 and E30. Conventional vehicles remain incompatible with higher blends such as E85, risking engine damage. India's ethanol production capacity exceeds current E20 blending requirements and could support higher mandates. But supply remains tied to monsoon conditions and agricultural output, said RNK Commodities consultant Nandlal Talware, adding that sustained feedstock availability for at least the next five years will be key to scaling E85 and FFV adoption. By Nikhil Sharma Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
India readies for 2027 SAF blending mandate
India readies for 2027 SAF blending mandate
Mumbai, 8 June (Argus) — India is gearing up for a mandatory 1pc sustainable aviation fuel (SAF) blend from 2027, triggering a rush among market participants to secure feedstocks and scale up domestic production. The country is on track to implement blending targets of 1pc by 2027, 2pc by 2028, and 5pc by 2030. Domestic SAF plants have been gearing up by securing international certification and efforts to secure consistent feedstock supplies. Indian state-owned Bharat Petroleum's (BPCL) refinery in Mumbai received the ISCC CORSIA certification for SAF production via the used cooking oil (UCO) co-processing pathway, it announced at the end of May. The SAF production facility is expected to become operational by the end of 2026, but the company has not disclosed the planned production capacity. This certification allows SAF produced at the plant to be used by airlines to meet their greenhouse gas reduction obligations under the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia). Upstream firm Indian Oil's (IOC) Panipat refinery became the first in the country to achieve the ISCC CORSIA certification in August 2025 and was expected to begin producing SAF from UCO later that year, with an initial production capacity of 35,000 t/yr. But the project has been delayed and is now expected to start in the second half of this year, a source close to the matter told Argus . Besides ramping up co-processing of waste oil feedstocks to produce SAF, several Indian firms have announced ambitions of producing neat SAF through the hydro-processed esters and fatty acids (HEFA) pathway. IOC recently approved a joint venture with M11 Energy Transition to develop a $110mn SAF project in Paradip, Odisha, using the HEFA pathway. In January, Essar Future Energy disclosed plans to build a 800,000 t/yr SAF and hydrotreated vegetable oil (HVO) plant in the Gujarat state's Devbhumi Dwarka district. The hydrotreated biofuels produced will have both ISCC EU and Corsia certification. Plants have also been preparing by taking the initiative to secure adequate waste feedstock supplies for HEFA SAF production — often a key constraint to realising projects. Feedstock UCO can be domestically procured through hotels, restaurants, and households, but domestic supply is still at a nascent stage, lacking infrastructure to streamline collection and require collaboration between companies and government authorities for efficient supply. Mangalore Refinery (MRPL) in May issued a tender for the supply of 35,000t of Indian UCO for SAF production, to be delivered over a period of one year between 1 September 2026 to 31 August 2027. Given domestic supply limitations, Indian producers are also seeking feedstock from overseas. Imports are allowed if plants are located in free-trade zones and producing for export, although the government prefers to limit imports to support energy independence. India has been consistently procuring food waste oil (FWO) from China for biodiesel production, and could begin using these volumes for SAF production. FWO is considered an advanced feedstock under the EU's Renewable Energy Directive. Shipping data firm Kpler reported flows of 143,533 cargoes of FWO from China to India in 2025, with all purchases made by MRPL's New Mangalore Refinery plant. Hydrotreating-grade FWO typically commands a premium of 50-100 yuan/t or $5-10/t over hydrotreating-grade UCO fob China, which Argus last assessed at $1,200/t on 5 June. Participants are also considering feedstock imports from southeast Asia, particularly Indonesia and Malaysia. Argus last assessed strait of Malacca UCO at $1,170/t fob on 5 June. Alcohol-to-jet ambitions Ethanol is also drawing attention as a feedstock for SAF because of oversupply in the domestic market Ethanol can be converted into SAF through the alcohol-to-jet (ATJ) pathway, which involves converting ethanol into hydrocarbons and refining it into molecules suitable for blending with aviation fuel. But this process is resource intensive, which can make ethanol-based SAF less competitive for airlines because of higher costs. India's ethanol production capacity stood at 19.53bn litres/yr as of 31 October 2025, data from the Department of Food and Public Distribution show. This capacity is expected to be sufficient to help meet the country's SAF targets and support the ethanol industry, which is facing weak demand. Achieving a 5pc SAF blending target by 2030 would require about 700mn litres/yr of SAF, according to the oil ministry, while industry experts estimate the requirement at nearly 500mn litres/yr. Despite a wave of recent ATJ plant announcements, the technology could take years to completely become fully established. IOC had announced ATJ-SAF production capacity in collaboration with US startup LanzaJet, targeting a production capacity of 86,800 t/yr. The plant is expected to become operational by March 2028. LanzaJet owns the world's first fully commercial, large-scale ATJ-SAF plant in Georgia, US, which began production in November 2025 following several years of delays. Biofuels firm GPS Renewables in April announced collaboration with Lummus Technology on an ATJ project at Pudimadaka, Andhra Pradesh. The plant is expected to produce 1,800 t/yr of SAF and is scheduled to begin operations by March 2029. By Nikhil Sharma Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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