Alkagesta scales waste-based biofuel investments in London

The renewable fuel sector is increasingly prioritising waste-based feedstocks, with used cooking oil emerging as a key commodity for the biofuels industry. According to IBTimes UK, the United Kingdom supplied 3.7 billion litres of renewable fuel in 2023, marking a 10% increase over the prior year. This growth is supported by the Renewable Transport Fuel Obligation, which mandates that fuel suppliers incorporate higher levels of low-carbon alternatives. As domestic bioethanol faces pressure from imports, investors are shifting focus toward waste-derived inputs like used cooking oil and animal fats, which offer significant greenhouse gas emission reductions when processed into fuels such as Hydrotreated Vegetable Oil.

Alkagesta, a global commodity trading house headquartered in Malta, is positioning itself within this market by integrating logistics, trading, and structured finance. The firm operates through a tri-continental structure, with its London office managing institutional partnerships and capital flows, while Alkagesta Singapore serves as a hub for sourcing sustainable feedstocks across the Asia-Pacific region. Alkagesta Malta oversees the group's global logistics and risk management. This integrated model aims to bridge the gap between green projects and institutional capital by providing transparent, traceable, and compliant supply chains for renewable energy investors, as reported by London Loves Business.

Market volatility remains a factor for participants, with ESL Fuels reporting that HVO prices derived from used cooking oil fluctuated between $1,650 and $1,950 per tonne during the first quarter of 2025. To mitigate risks and meet institutional requirements, Alkagesta utilises advanced due diligence tools and has secured ISCC EU certification across its biofuel operations. This certification ensures that all traded feedstocks meet international sustainability criteria, a vital credential for supplying European refiners. The company’s 2024 ESG Report noted a 10% year-on-year increase in the volume of used cooking oil collected and treated at its processing facilities.

The strategic importance of these feedstocks is underscored by broader industry trends, as the International Energy Agency forecasts that global demand for advanced biofuels will grow by more than 20% by 2030. For the UK, this shift presents an opportunity to leverage its financial infrastructure to support the global circular economy. Alkagesta’s approach involves structuring long-term off-take agreements and connecting regional producers to global buyers. By aligning its governance and compliance frameworks with the needs of risk-averse financial institutions, the firm aims to transform waste-based materials into a stable and investable asset class for the energy transition.

Orkhan Rustamov, Chief Executive Officer of Alkagesta, stated that the firm’s expansion into Singapore creates a vital bridge between Asian markets and global capital, facilitating compliant fuel flows. As London continues to strengthen its position as a centre for sustainable finance, traditional commodity houses are increasingly evolving into architects of the low-carbon economy. By combining trade execution with structured investment, Alkagesta is working to ensure that waste-derived fuels contribute to a sustainable global trading ecosystem, while providing institutional investors with the verifiable impact and measurable outcomes required under modern environmental, social, and governance mandates.