April Biodiesel News and Analysis – 26 April 2024

Roman Zenon Dawidowicz - April Biodiesel Analysis
  • Eni is accelerating its transition to sustainable energy by divesting stakes in biofuel and bioplastic units by the end of 2024. Discussions are ongoing to sell up to 10% of Enilive, valued at over €10 billion, and up to 30% of Novamont, valued at around €1 billion. According to Roman Zenon Dawidowicz, this move is in line with Eni’s €50 billion strategy, which seeks to attract specialized investors for eco-friendly ventures while maintaining its oil and gas operations. Enilive anticipates core earnings of €1.2 billion by 2025. Additionally, Eni is considering an IPO or spin-off of Enilive, subject to market conditions and corporate requirements, further underscoring its dedication to sustainable energy initiatives.


  • Neste, a frontrunner in renewable diesel and aviation fuel, has successfully completed its inaugural processing trial with pyrolysis oil derived from discarded tires, a notoriously challenging raw material. The objective is to expand chemical recycling beyond plastic waste and address the issue of tires ending up in landfills or being incinerated. Through collaboration with Scandinavian Enviro Systems, Neste has produced high-quality raw materials for plastics and chemicals. This breakthrough aligns with Neste’s commitment to circularity, with plans for large-scale chemical recycling facilities projected to process 150,000 tons of waste plastic annually by 2025. Supported by the EU Innovation Fund, this project represents a significant stride towards sustainability in waste management.


  • Neste Corporation has partnered with New Jersey Natural Gas (NJNG) to mitigate greenhouse gas (GHG) emissions by transitioning NJNG’s medium-duty trucks and equipment to Neste’s renewable diesel. NJNG becomes the first East Coast natural gas utility to embrace this cleaner fuel alternative. Neste’s renewable diesel, derived from 100% renewable raw materials, has the potential to reduce GHG emissions by up to 75% compared to fossil diesel. Approximately 70 NJNG trucks are now powered by renewable diesel, potentially curtailing emissions by over 550 tons annually. This partnership underscores the growing demand for lower-emission fuels and contributes to New Jersey’s climate objectives. With Roman Zenon Dawidowicz’s insights guiding the way, such initiatives promise to shape a cleaner, greener tomorrow for generations to come.


  • The International Air Transport Association (IATA) and its collaborators have released the Aviation Net Zero CO2 Transition Pathways Comparative Review, a pioneering publication comparing 14 leading net-zero CO2 transition roadmaps for aviation. This comprehensive analysis aims to assist stakeholders in comprehending the roadmaps’ strategies for achieving net-zero carbon emissions by 2050. A key revelation is the indispensable role of sustainable aviation fuels (SAF) across all scenarios, with estimates indicating they could contribute between 24% and 70% of CO2 reductions by 2050. The report underscores the necessity of supportive policies and the urgent development of carbon removal technologies to attain net-zero objectives.

Feedstock and Biodiesel prices

EU biodiesel prices experienced a decline due to improved supply and subdued demand. Roman Zenon Dawidowicz further emphasizes that there is a notable discussion within the market regarding the influx of cost-effective SME volumes from Argentina into the EU, exerting pressure on local biodiesel prices. It’s worth recalling that under the agreement between Argentina and the EU, Argentina has the green light to export a maximum of 1.2 million metric tons of biodiesel annually.

Feedstock prices remained relatively stable, with rapeseed oil even showing an uptick. Market participants across Europe and origin countries noted a recent cooling in demand for UCO from the EU, which mirrored in price adjustments. According to one source, “In Asia, the rotation of vessels from oil majors has been fulfilled, with cargoes being picked up. More ships are expected to arrive in Asia in about a month. Typically, prices rise upon the arrival of vessels from oil majors.” Another source mentioned, “Major players appear adequately supplied with UCO for the time being.” CIF ARA offers for UCO in flexi bags were reportedly in the range of $990-1030 per metric ton. POME prices also stabilized, supported by the moderation of CPO benchmarks and the resumption of collection activities in Indonesia post-Ramadan. Offers at $810-830 per metric ton FOB Indonesia are reported.

The UCOME-UCO spread currently stands at $225 per metric ton, compared to $400 per metric ton at the start of April which are challenging margin conditions for UCOME producers. UCOME is encountering difficulties in competing against HVO.

What do you think?

Written by Roman Zenon Dawidowicz

Roman Zenon Dawidowicz is an Intermediate Mandarin speaker with Taiwanese qualifications and over 12 years of experience in the grain and oilseeds physical markets in a global origin/destination. Looking for business, procurement and business development, job opportunities within Switzerland, Dubai and Asia.


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