European biofuel sector could face feedstock supply shortage

The biofuel sector in the European Union (EU) – one of the world’s largest markets for biofuels – could face a feedstock supply shortage due to increasing demand alongside stricter environmental policies in the region, according to a report by a senior director at global derivatives and commodities exchange CME Group. Increased demand for renewable products from biofuel producers was creating potential feedstock supply disruptions, CME Group’s senior director, research and product development, Paul Wightman, said in the 28 October report. “The uncertainty over feedstock supply, which is likely to put further pressure on biofuel profit margins – combined with goals to decarbonise – are elevating price volatility,” he said. According to a July Argus Media report, total European biofuel consumption was expected to total around 30.6bn litres in 2025, up 10% from 2024. The latest version of the Renewable Energy Directive (RED III) set a renewable energy target of 42% by 2030. In the ...