October 6, 2023[Biofuels international]- Global supplies of used cooking oil are expected to more than double to 31 million mt by 2030 – from the current 14 million mt.
This is a development driven by rapidly growing Asian supply geared towards cashing in on US and EU incentives for biofuels made from agricultural waste and non-agricultural feedstocks, S&P Global revealed in a recent report.
In the EU, biodiesel made from UCO, also known as used cooking oil methyl ester, or UCOME, is counted twice towards emissions savings targets, while the US Inflation Reduction Act also supports tax credits for clean fuels and sustainable aviation fuel (SAF).
SAF made from UCO achieves a 45%-90% reduction in carbon intensity, a popular metric used to measure reductions in carbon emissions, according to an SAF market outlook report by S&P Global Commodity Insights in August.
UCO-derived biodiesel has a significantly lower carbon footprint with a carbon intensity score of 21.7 gCO2/MJ, much lower than biodiesel derived from first generation conventional vegetable oil feedstock such as rapeseed, soybean and palm, according to a working paper by the International Council on Clean Transportation released in February.
UCO imports from the EU is estimated to rise to 3.7 million mt in 2030, according to trade estimates, as the bloc ramps up its decarbonisation targets under its Renewable Energy Directives policy from its second phase known as RED II to RED III in 2023. With an increased collection of UCO, China is likely to become the largest supplier of the feedstock to western destinations, experts said.
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