London Loves Business reports that London's financial community is increasingly interested in waste-based biofeedstocks, such as used cooking oil and animal fats, as valuable commodities for next-generation biofuels. These materials are seen as crucial for the shift from fossil fuels to renewable energy sources.
The UK's biofuels industry is undergoing a significant transformation, driven by the government's Renewable Transport Fuel Obligation, which aims for nearly 19.5% renewable fuel by 2030. While the domestic ethanol sector faces challenges, investors are turning to waste-based feedstocks, which offer both regulatory alignment and ESG credibility.
Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF), derived from organic waste, are central to this evolution. London Loves Business notes 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.
Alkagesta, a global commodity trading house, is capitalising on this opportunity. The company, founded in 2018, trades over 7 million metric tons of commodities annually across more than 40 countries. Its London subsidiary, established in 2024, leverages the city's financial expertise to structure investments for the energy transition.
Orkhan Rustamov, CEO of Alkagesta, stated that London provides a unique combination of financial sophistication and institutional trust. The company's strategy involves combining governance with growth, ensuring traceable sourcing, regulatory compliance, and ESG integration for all transactions.
Alkagesta has obtained ISCC EU certification for its biofuels operations, ensuring that traded feedstocks meet international sustainability criteria. This certification allows the company to supply verified renewable materials to European refiners and fuel producers, attracting investors with strict ESG mandates.
The firm's operational structure includes Alkagesta Malta for corporate and trading functions, Alkagesta London for capital and structuring, and Alkagesta Singapore for connecting feedstock supply from Asia-Pacific with European demand. This global network helps navigate market volatility while maintaining transparency and efficiency.
