Dear readers,
wishing all readers and their families a happy new year. Thank you for your continued support. I look forward to seeing some of you at the 23rd International Biofuels Congress in Berlin on January 19th and 20th. https://www.fuels-of-the-future.com/en
2026 begins with news of military action by the US president. Plans by the Trump administration to relax fuel efficiency standards in the US could reduce costs for US biofuel producers and even lower the price of new vehicles. However, for fleet operators, this short-term relief is likely to be short-lived. Lower efficiency means higher fuel consumption, and industry analysts point to rising operating costs that could quickly exceed the initial savings.
Biofuel is an affordable alternative
By 2030, the share of renewable energy in road transport will increase by around 50%. Biofuels for road transport, including liquid biofuels and biogases, will continue to contribute significantly to this growth. Since the IEA’s last forecast, total demand for biofuels in 2030 has been revised upwards by 10%. This mainly reflects increased demand for transport fuels in the United States, Brazil, Indonesia and India.
Reports from the UK Renewable Transport Fuel Obligation (RTFO) argue that the environmental benefits outweigh the economic costs. They conclude that the cost per kg of CO₂ savings for buyers averaged £5.70.
Nevertheless, there are conflicting reports about how renewable biofuels actually are. A new study casts doubt on the integrity of biodiesel and suggests that some manufacturers may be declaring virgin palm oil as POME (palm oil mill effluent). POME is a by-product of palm oil processing, and global stocks are estimated at around 1 million tonnes. However, European biofuel producers reported consuming more than double that amount in 2023, raising serious questions about the origin of the additional POME.
Fleet operators face low margins, regulatory pressure and rising fuel costs. Efficient fuel management is therefore
The Iowa U.S. Secretary of Agriculture announced that the Iowa Renewable Fuels Infrastructure Program (RFIP) board approved 108 projects at its December quarterly meeting to promote new and expanded biofuel infrastructure projects throughout the state. The approved projects span 46 counties and include nearly $4.59 million in funding. These cost-sharing investments will help motorists save money by expanding access to lower-cost, cleaner-burning, and locally produced biofuels such as E15 (Super 88 gasoline) and biodiesel. https://biodieselmagazine.com/articles/iowa-funds-108-renewable-fuels-infrastructure-projects-to-expand-access-to-e15-biodiesel
DHL Global and CMA CGM have taken a significant step towards decarbonizing global container transport. The two companies have agreed to jointly use 8,990 tons of the second-generation biofuel UCOME. This will save approximately 25,000 tons of CO₂ equivalents on ocean freight transported under DHL’s GoGreen Plus service. This initiative enables DHL customers to significantly reduce the CO₂ intensity of their international supply chains while accelerating the industry’s shift towards alternative marine fuels. https://biofuels-news.com/news/dhl-and-cma-cgm-accelerate-decarbonisation-of-ocean-freight-with-joint-biofuel-initiative/
Southern Energy Renewables and DevvStream plan to jointly explore the development of a next-generation low-carbon fuel platform. The goal is to accelerate the adoption of sustained-cycle fuel (SAF) and expand domestic production capacity. The collaboration aims to increase long-term SAF supply across various production pathways while improving the transparency and commercialization of its environmental benefits. As part of negotiations for a binding agreement, the parties intend to assess the economic feasibility of constructing a high-efficiency fuel (HEFA)-based SAF plant in Louisiana. https://www.businesswire.com/news/home/20251216031566/en/DevvStream-Southern-Energy-and-XCF-Global-Announce-Plan-to-Pursue-Strategic-Collaboration-to-Build-Integrated-Low-Carbon-Fuels-Platform-and-Advance-Multi-Pathway-SAF-Strategy
Repsol has reached a new milestone in the decarbonization of the transport sector: 1,500 filling stations – 1,429 in Spain and 71 in Portugal – now offer Nexa Diesel, made from 100% renewable energy. This progress underscores the company’s commitment to renewable fuels and expands its technology offerings for its customers’ mobility needs. It also achieves the target set out in the Strategic Plan 2024–2027. With this success, Repsol positions itself as the leading network for 100% renewable fuels in Europe and has already sold over 210 million liters this year. https://www.hydrocarbonprocessing.com/news/2025/12/repsol-surpasses-1-500-service-stations-in-spain-and-portugal-offering-100-renewable-nexa-diesel/
The Leuna biorefinery in Germany has reached a significant milestone in the production of commercial, wood-based chemicals. The refinery, the largest industrial investment in biochemicals in Europe, has commenced the production and marketing of industrial sugars. Following the successful start of industrial-scale hydrothermal wood processing earlier this year, the biorefinery has now achieved stable operation in the separation of lignin and sugars. This crucial process step is a prerequisite for converting sugars into renewable glycols and lignin into renewable functional fillers. https://worldbiomarketinsights.com/upm-starts-wood-based-chemical-production-at-leuna-biorefinery/
An updated estimate from the European Commission indicates that this year’s soybean harvest in the EU-27 will be slightly below last year’s level due to a reduced acreage for the 2025 harvest. The expected yield increases will not be able to compensate for this reduction in acreage. In its latest estimate, the European Commission slightly raised its forecast for soybean production in the EU. According to the data, the 2025 harvest is approximately 18,000 tonnes higher than the October estimate, reaching just under 2.9 million tonnes. Nevertheless, this represents an estimated decrease of 106,000 tonnes compared to the previous year. The decrease is due to a 7% reduction in acreage, as average yields are expected to exceed both last year’s level of 26.8 decitons per hectare and the long-term average of 27.8 decitons per hectare. Italy remains the leading soybean producer in the EU with a production of 1.1 million tons, followed by France with 387,000 tons. Harvests in the Balkan states are expected to fall short of last year’s figures. https://ukragroconsult.com/en/news/eu-commission-expects-smaller-soybean-output/
BeZero Carbon Ltd., a leading global rating agency for CO₂ emissions, has upgraded the rating of Gevo North Dakota (“GND”) carbon capture and storage (CCS) plant to “A”. Gevo is a pioneer in the voluntary carbon markets and specializes in the production and distribution of carbon removal certificates (CORCs) in accordance with the stringent Puro.earth standard. The GND plant is the largest producer of technology-based CO₂ removal certificates and the only CCS ethanol project to issue certificates with a lifespan of one thousand years, based on the Puro.earth methodology for “geologically stored carbon”. GND sources the majority of its maize raw material from within a 120-kilometer radius of the plant and uses Verity, a CO₂ tracking platform for upstream agriculture developed by Gevo (Measurement, Reporting, and Verification – MRV). Verity serves to document sustainable agricultural practices, create transparency in agricultural value chains, and provide tools for land assessment. https://www.globenewswire.com/news-release/2025/12/18/3207772/0/en/Gevo-North-Dakota-Awarded-A-Rating-from-BeZero-Carbon-Affirming-its-High-Quality-Carbon-Removal-Credits.html
The Brazilian National Bank for Economic and Social Development (BNDES) has approved financing totaling R$450 million for Biometano Verde Paulínia S.A. (BVP) to construct a biogas purification plant for biomethane production at the Ecoparque Orizon VR in Paulínia (SP). BVP is a joint venture between Onebio, Edge (a Cosan Group company), and Orizon VR. Approximately 80% of the approved amount will be financed through the Climate Fund and 20% through the Finem line of account. Onebio, which will process all the biogas produced from municipal solid waste at the Paulínia landfill, will operate Brazil’s largest biomethane plant, with a production capacity of up to 225,000 m³ of renewable energy gas per day. During the construction phase, an estimated 3,000 direct and indirect jobs were created, contributing to regional development and the expansion of Brazil’s low-carbon economy. https://en.brasil247.com/brasil-sustentavel/bndes-financia-r-450-milhoes-para-planta-de-biometano-em-paulinia
Uniper and thyssenkrupp have signed a framework agreement laying the foundation for the construction of commercial ammonia cracking plants. Uniper has secured license packages for the use of thyssenkrupp Uhde’s ammonia cracking technology. The agreement covers up to six large-scale plants with a total capacity of 7,200 tons of ammonia per day. The industrial-scale use of hydrogen from ammonia will make a significant contribution to the decarbonization of national and European industry. Direct transport of hydrogen is both technically and economically challenging, while ammonia represents an ideal transport and storage medium. Ammonia can be liquefied relatively easily and transported in large quantities over long distances. Large-scale hydrogen imports are not feasible without high-performance cracking technology. This project is therefore an important step towards building a resilient energy infrastructure in Europe. https://www.ingenieur.de/technik/fachbereiche/energie/wasserstoff-import-uniper-und-thyssenkrupp-planen-sechs-ammoniak-cracker/