Alkagesta Expands Bio-Feedstock Infrastructure as UK Biofuel Demand Accelerates

The expansion of waste-based feedstocks within the renewable fuel sector is accelerating across the United Kingdom, driven by regulatory frameworks designed to lower lifecycle transport emissions. Under the Department for Transport's Renewable Transport Fuel Obligation (RTFO), fuel suppliers are required to blend an increasing proportion of low-carbon biofuels into conventional transport fuel pools. Data released by the Department for Transport indicates that 3.7 billion litres of renewable fuel were supplied in the UK during 2023, representing a 10 percent year-on-year increase and accounting for over 7 percent of total domestic transport fuel. A substantial portion of this growth stems from waste inputs such as used cooking oil and animal fats, which receive double crediting under RTFO rules. This regulatory incentive comes as Hydrotreated Vegetable Oil (HVO), a renewable diesel alternative capable of reducing greenhouse gas emissions by up to 90 percent, continues to gain market traction despite price volatility. According to the Q1 2025 Biofuel Market Update from ESL Fuels, UCO-derived HVO prices ranged between $1,650 and $1,950 per tonne (approximately £1,230 to £1,450 per tonne) amid shifting global supply and demand dynamics.

To bridge the gap between green projects and institutional capital, commodity group Alkagesta is utilizing its multi-jurisdictional network to structure circular-economy asset investments. Headquartered in Malta, the business operates Alkagesta UK in London to focus on institutional partnerships and structured investments across Europe, Asia, and Africa, while Alkagesta Singapore functions as an operational sourcing hub. The company aggregates used cooking oil supplies, structures long-term off-take contracts, and secures ISCC EU certification across its trading network. Commenting on the firm's strategic expansion, Orkhan Rustamov, Chief Executive Officer of Alkagesta, stated: "Our esteemed customers value not only execution but trust and transparency. Singapore is where Asian markets converge with global capital. By opening a hub there, we are creating a strategic bridge between Europe and Asia that ensures compliant fuel flows and contributes to a sustainable global trading ecosystem."

Operations across the group are split between physical logistics and capital structuring to support compliant bio-feedstock supply chains. Alkagesta Malta manages global sourcing and logistics, supporting feedstock processing facilities that supply bio-feedstock compliant with the EU Renewable Energy Directive (RED III) standards. Figures from the company's 2024 ESG Report show a 10 percent year-on-year increase in the volume of used cooking oil collected and treated at its processing plants, alongside a 39 percent expansion in global collection points. To satisfy institutional risk management requirements, the firm incorporates compliance tools including World-Check and SeaSearcher to ensure transaction traceability across its global supply chain.

The broader market background reflects sustained demand for waste-derived inputs across European fuel markets, where approximately 46 percent of all vegetable oil is currently directed into biodiesel manufacturing. HVO adoption is further supported by its exemption from conventional blending caps. On the financial side, data from PitchBook shows that UK-based ESG-related private equity transactions reached £71 billion in disclosed value during the first half of 2025, nearly doubling year-on-year. Furthermore, long-term market forecasts from the International Energy Agency indicate that global demand for advanced biofuels will expand by more than 20 percent by 2030, with waste-derived feedstocks expected to constitute the primary driver of this market growth.