Europe’s biofuels sector faces feedstock shortages

The biofuels sector in the European Union (EU), one of the world’s largest markets, could face a feedstock shortage due to growing demand and tightening environmental policies, according to a report by Paul Whiteman, Senior Director of Research and Development at CME Group. He stated that increasing demand for renewable products from biofuels producers creates risks of feedstock supply disruptions, which, combined with decarbonization targets, increases price volatility and pressures on industry profitability. According to Argus Media, total biofuel consumption in Europe is expected to reach 30.6 billion liters in 2025, a 10% increase from 2024. The latest version of the Renewable Energy Directive (RED III) sets a target of 42% renewable energy by 2030. The transport sector has set targets of 29% renewable energy and a 14.5% reduction in greenhouse gas emissions. The overall renewable energy target has been increased from 32% to 42.5% compared to RED II, but the target date ...