The new commodity frontier: Why London investors are backing waste-based biofeedstocks - London Business News | Londonlovesbusiness.com
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The new commodity frontier: Why London investors are backing waste-based biofeedstocks - London Business News | Londonlovesbusiness.com
"As global markets shift from fossil fuels to renewables, London's financial elite are scouting an unlikely new asset: waste. Specifically, waste-based biofeedstocks such as used cooking oil (UCO), animal fats, and organic residues are the core ingredients for next-generation biofuels. These materials are increasingly viewed not as by-products, but as valuable commodities. And one of the participants in this transformation is Alkagesta, the London investment expertise of Alkagesta company, a global commodity trading house headquartered in Malta with a growing footprint in Singapore."
"This segment promises both regulatory alignment and ESG credibility. Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF), both derived from UCO and other organic waste, are at the centre of this evolution. Analysts at ESL Fuels report that UK market prices for HVO feedstocks in early 2025 ranged between $1,650 and $1,950 per tonne, reflecting strong global demand and limited supply."
London investors and commodity traders are treating waste-based biofeedstocks — used cooking oil, animal fats and organic residues — as valuable commodities for next-generation biofuels. UK policy under the Renewable Transport Fuel Obligation targets nearly 19.5% renewable transport fuel by 2030, driving demand. HVO and Sustainable Aviation Fuel produced from these feedstocks face strong global demand and constrained supply, with early-2025 HVO feedstock prices at $1,650–$1,950 per tonne. Volatile prices attract structured investors seeking regulated, ESG-aligned assets. Alkagesta, a Malta-headquartered commodity trading house with investments based in London and Singapore, is participating in sourcing and monetising these waste-derived feedstocks.
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