Q2 2024 fatty acids and alcohols outlook
This exclusive update delivers a concise overview of the fatty acids and alcohols markets, sharing insight into:
- Palm and lauric oil prices, analysis and outlook
- Glycerine quarterly contracts, supply & demand discussion and trade flow analysis
- Fatty alcohols quarterly outlook trends and in depth trade analysis
- Fatty acids price outlook, trade data and feedstock analysis
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Malaysian biodiesel group urges faster B20 rollout
Malaysian biodiesel group urges faster B20 rollout
Singapore, 7 April (Argus) — The Malaysian Biodiesel Association (MBA) has urged the government to speed up the nationwide rollout of biodiesel-fossil diesel blends of up to 20pc (B20) to strengthen energy security, it said today. The MBA called for immediate implementation of higher blending levels between B10 and B20 in areas where infrastructure can support it. It acknowledged that progress towards higher blends has been limited by infrastructure readiness but sought further government support to enable a nationwide B30 blend. To encourage biodiesel use outside the national blending programme, the MBA also asked the government to exempt a 10pc sales tax on biodiesel. The national biodiesel programme, combined with voluntary biodiesel use, would enhance energy security, cut greenhouse gas emissions, generate foreign exchange savings, reduce exposure to global oil price shocks and improve fiscal resilience while supporting domestic palm oil and rural livelihoods, the MBA said. Malaysia launched the B20 biodiesel programme for the transport sector in February 2020, but implementation has been limited to Langkawi, Kedah, Labuan and Sarawak. B7 remains the applied blend in the industrial sector without a nationwide rollout, the MBA said. Neighbouring countries have also announced or are considering higher biodiesel blending levels because of energy security concerns due to the war in the Middle East. Indonesia last week announced it will implement a B50 blending mandate from 1 July while Thailand adjusted the biodiesel content from B5 to B7 in March and has announced restrictions on crude palm oil exports from 7 April . By Malcolm Goh Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Indonesia targets 50pc biodiesel blend in 2026
Indonesia targets 50pc biodiesel blend in 2026
Singapore, 30 March (Argus) — Indonesia will increase its biodiesel-fossil gasoil blend to 50pc (B50) this year, president Prabowo Subianto said during a state visit to Japan today. The development follows months of backtracking on the country's plans for its biodiesel mandate. The president in January gave a directive that Indonesia would maintain a B40 target for 2026 because of high costs of funding the mandate due to wide palm oil-gasoil (Pogo) spreads above $350/t. At the same time, the government raised palm product export levies by 2.5pc from March to fund biodiesel production. Ministry of energy and mineral resources director general Eniya Listiani Dewi said in late 2025 that B50 could be implemented by the second half of 2026 , subject to B50 road test results and other logistical bottlenecks. The government has likely revived interest in increasing to a B50 blending target because of the war in the Middle East, which has significantly narrowed the Pogo spread and disrupted oil supplies to Indonesia. The front-month Pogo spread between Bursa Malaysia crude palm oil (CPO) futures and Ice gasoil futures hit a 41-month low of a $292/t discount at 16:30 Singapore time (08:30 GMT) today. The B50 announcement also drove third-month CPO futures to a 15-month high of 4,778 ringgit/t ($1,186/t) at the same timestamp. Indonesia is also eager to further reduce its gasoil import dependence in the current volatile market. Indonesian plantation fund management agency BPDP funds the price gap between biodiesel and fossil gasoil using revenue from export levies on palm oil and related products. It delivers the funds to biodiesel producers under the public service obligation sector 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.
Brazil's bioLPG hits glycerin barrier
Brazil's bioLPG hits glycerin barrier
Sao Paulo, 27 March (Argus) — The use of glycerin to produce renewable LPG, known as bioLPG, could reshape how it and other biodiesel byproducts are viewed in Brazil, but structural constraints around feedstock quality and cost are likely to limit its attractiveness in the near term. Energy research company Epe outlined bioLPG's potential role in a fact sheet published in January, presenting it as chemically identical to LPG and fully compatible with existing infrastructure. Because it is a drop-in fuel, bioLPG could support decarbonization in segments such as cooking and small-scale industry without requiring changes to equipment or distribution systems. But Epe added that domestic production remains incipient and highly dependent on how bioLPG is positioned within existing biofuel chains. BioLPG is not a primary output in most of Epe's production pathways, but a co-product of larger, capital-intensive processes such as renewable diesel and sustainable aviation fuel. Emerging alternatives, such as the conversion of glycerin in the biodiesel stream, could expand supply while boosting biomass streams in Brazil. Glycerin is a by-product of biodiesel production. It is widely used in pharmaceuticals, cosmetics and food applications because of its stability and ability to hold water. But glycerin produced in Brazilian biodiesel plants is mostly crude and would require additional refining before it could be used as feedstock for bioLPG. This extra processing step adds cost and complexity, especially in a market where bioLPG would still need to compete with LPG and other fuels. Large Brazilian biodiesel producers are not investing in glycerin refining, meaning they cannot supply the product needed by the bioLPG market, they told Argus . These plants say that crude glycerin is important to their revenue, but it is mostly destined for export and they have no plans to invest in expanding the market domestically. Brazil produced 8.65mn t (176,790 b/d) of biodiesel in 2025, according to oil regulator ANP. With a 10pc glycerin yield, crude glycerin production is estimated at about 865,000t for the year. Combined exports of crude and refined glycerin totaled 821,245t in 2025, with China, India and Russia standing out as the main destinations. Refined glycerin represented 145,00t of that total. Industries would need to pay a premium to international prices for those glycerin volumes to stay in Brazil. Brazilian calculated crude glycerin prices stand at $770-780/t fob Santos, according to Argus ' biweekly assessment published on 19 March. Refined glycerin at the port is trading between $1,250-1,270/t. These dynamics underline the gap between the technical promise of glycerin-based bioLPG and current market behavior. While glycerin is abundant, its existing export outlet provides liquidity and price discovery that domestic bioLPG projects would struggle to match without policy support or long-term offtake agreements. Redirecting glycerin toward bioLPG production would require domestic buyers to compete with international bidders while also absorbing the cost of refining. BioLPG is expected to expand on a larger scale at first by leveraging existing renewable diesel, SAF or other processes that can handle renewable feedstocks and produce bioLPG as a co-product. Epe itself points to incentives, regulatory clarity and cost reductions as prerequisites for accelerating domestic bioLPG supply. Until those conditions are met, glycerin-to-bioLPG is likely to remain a medium-term option rather than a near-term lever for improving biodiesel margins. By Rebecca Gompertz and Natalia Dalle Cort Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
United Resins buys 50pc stake in Brazil’s Florpinus
United Resins buys 50pc stake in Brazil’s Florpinus
London, 24 March (Argus) — Portuguese pine chemical derivatives producer United Resins has acquired 50pc of the share capital of Brazil's Florpinus Industria Quimica, the latter company said. The acquisition adds 35,000 metric tonnes (t)/yr of pine oleoresin and 30,000 t/yr of gum rosin processing capacity, as well as 18,000 t/yr of gum rosin derivatives capacity, according to Florpinus' website. The Florpinus group includes Florpinus Industria Quimica, which operates its pine chemical facilities, and Resisul Agroflorestal, which manages 1,989.20 hectares of forests. "This transaction represents a significant strategic step in strengthening the group's value chain," the company said. The deal gives United Resins access to "critical raw materials" such as pine oleoresin and gum rosin. Brazil is a leading supplier of elliottii gum rosin and Portugal's largest provider of the material. Citing synergies between the two companies, Florpinus said the transaction enables vertical integration of their combined elliotti gum rosin and tall oil rosin (TOR) portfolio, increases capacity to develop new value-added products and expands their presence in Europe, Latin America and North America. TOR is a fraction obtained from crude tall oil refining. TOR and gum rosin are interchangeable in several applications, but their production processes differ. Both gum rosin and TOR are used as feedstocks for gum rosin derivatives used in adhesives, road marking and food and beverage applications. Florpinus' main facility and headquarters are in Campo Largo, Parana state. It also operates a facility in Itapeva, Sao Paulo state. As part of the deal, United Resins' co-founder and chief executive officer Antonio Mendes Ferreira will be named as a member of the Florpinus board of directors, the company added. By Leonardo Siqueira Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.