General Index (GX) has rolled out new assessments that reflect the rapidly diversifying biofuels landscape. These new indexes offer regional granularity and support more accurate price discovery:
United States:
- Feedstocks: UCO, Soybean Oil, Corn
- Marine Biodiesel: B30 Houston
Europe:
- Biodiesel: TME, FAME+10, SME, POME-ME
- Feedstocks: UCO, Tallow (Cat 1&2), Tallow (Cat3), POME
- Marine Biodiesel: B30 Rotterdam, B30 Gibraltar
Asia:
- Feedstocks: UCO, Palm Oil
- Marine Biodiesel: B24 Singapore, B24 Fujairah
These prices complement GX's existing suite, which already includes assessments for SAF, renewable diesel, ethanol, and biodiesel — offering a comprehensive view of low-carbon fuel economics across global markets.
Current State of Play: A Fragmented Policy Landscape
United States: Policy Paralysis & Feedstock Scrutiny
At the timing of writing, Trump has slapped (and then partially removed) heavy tariffs on imports coming into the United States, causing a huge shake up in both financial and physical energy markets. For the US biofuels sector, this wasn’t the first snap of uncertainty this year, as the 1st of January signalled the expiration of 40A and 40B tax credits, leaving room for the implementation of the 45Z Production Tax Credit. Whilst the previous tax credits were volumetric tax credits ($1/gal for biodiesel and up to $1.75/gal for SAF), the 45Z credit will be tied to the lifecycle carbon intensity of the fuel.
However, full clarity of the Inflation Reduction Act (IRA) is still yet to be provided by the new US administration. Information is being given in small snippets at a time, with the most recent outlining that imported used cooking oil (UCO) will not qualify for the 45Z tax credit, instead only domestic UCO will be eligible. This decision comes as the Treasury looks to clamp down on the use of substances - such as virgin palm oil - mislabelled UCO, predominately coming into the US from China. Imported tallow remains eligible, setting the stage for increased competition between tallow and soybean oil producers.
Europe: Mandates Up, Margins Down
As in the US, the 1st of January brought a number of changes to the European biofuels sector. The most eye-catching change being the launch of the European and UK Sustainable Aviation Fuel (SAF) mandates, requiring a minimum SAF uplift of 2% in 2025, increasing to 70% by 2050.
The oversupply of SAF and Hydrogenated Vegetable Oil (HVO), also known as Renewable Diesel, paired with an increase in feedstock prices saw refinery margins collapse globally. Hydrotreated Esters and Fatty Acids (HEFA) facilities in Rotterdam producing such biofuels saw SAF margins decrease from +$600/MT in mid 2024 to just +$150/MT in early 2025.
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As the US administer heavy import tariffs on China and disincentivise the use of imported UCO, it would be natural to assume that flows of Chinese UCO would be redirected to Europe. However, a number of investigations are ongoing in Europe looking at the mislabelling of virgin palm oil as waste-based feedstocks such as UCO. The International Sustainability and Carbon Certification (ISCC) has a EU certification scheme that verifies that biofuels are compliant with requirements laid out in the Renewable Energy Directive (RED) II. The European Commission are thought to be looking into the robustness and effectiveness of this certification.
The new feedstock prices complement GX’s existing biofuels spot prices and HEFA cost of production indexes, allowing analysts to fully understand feedstock price dynamics and the components that make up the SAF and HVO spot prices.
Asia: Mandates Gaining Momentum
Asia are not far behind on their SAF mandates either, with the likes of Singapore’s 1% mandate kicking in next year and India’s 1% mandate coming into effect the year after. In recent years, a number of Southeast Asian countries have led the way with their biodiesel mandates, particularly Indonesia who have implemented a B40 (40% biodiesel/60% fossil diesel) blend mandate this year and aiming for B50 next year.
The feedstock landscape in Asia varies greatly in comparison to the US and Europe, leading the way in UCO collection and exports, plus accepting the use of palm oil and it’s derivatives. For example, the primary biodiesel utilised in Indonesia’s B40 mandate is produced using palm oil, a feedstock that does not meet the EU Renewable Energy Directive’s (RED) sustainability criteria or the EU Deforestation Regulation (EUDR). Both UCO and Palm Oil are part of the set of Asian bio indexes newly launched by General Index, offering producers and traders a clear understanding of recent price trends.
Benefits for Market Participants
These new indexes are designed to deliver high-impact benefits across the value chain:
- Producers & Refiners: Benchmark feedstock procurement and product pricing in real-time, manage margins, and align output with regional demand signals.
- Traders: Improve arbitrage decisions across regions and better evaluate blending economics for road, aviation and marine biofuels.
- Policymakers & Regulators: Ground policy design in accurate, verifiable price data, and assess the cost impacts of new mandates or incentives.
- Consultants & Analysts: Gain robust reference points to model carbon intensity economics, project compliance costs, and value long-term investments.
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