T&E Warns of Growing Feedstock Competition as Global Biofuel Demand Rises

European environmental group Transport & Environment (T&E) has released a new report, Seeds of Crisis, warning that rising demand for biofuels could intensify competition for agricultural resources and increase pressure on global food supplies.

According to the report, recent geopolitical tensions and disruptions in energy markets have renewed interest in alternative fuels. However, T&E argues that expanding the use of crop-based biofuels may divert valuable agricultural resources away from food production, potentially contributing to higher food prices and increased market volatility.

The report highlights a growing concern for the sustainable aviation fuel (SAF) sector. Most SAF production today relies on the HEFA pathway, which uses feedstocks such as used cooking oil (UCO), animal fats, and vegetable oils. As governments introduce SAF blending mandates and airlines seek to reduce carbon emissions, demand for these limited feedstocks is expected to rise significantly.

T&E notes that multiple industries—including renewable diesel, biodiesel, road transportation, and aviation—are increasingly competing for the same pool of sustainable oils and fats. This competition could create supply constraints and drive up feedstock prices, particularly as SAF production scales up over the coming decade.

Industry analysts have repeatedly pointed to potential shortages of waste-based feedstocks by 2030 if current growth projections continue. As a result, attention is shifting toward alternative SAF pathways that utilize agricultural residues, forestry waste, municipal solid waste, and synthetic e-fuels produced from renewable electricity and captured carbon dioxide.

The report underscores a broader challenge facing the energy transition: balancing decarbonization goals with food security and sustainable land use. While biofuels are expected to remain an important component of future transport fuel systems, policymakers are increasingly being urged to prioritize waste-based and non-food feedstocks over crops grown specifically for fuel production.

For the SAF industry, the message is clear: long-term growth will depend not only on supportive policies and production capacity but also on securing sustainable feedstock supplies. As global demand accelerates, access to reliable low-carbon feedstocks may become one of the most critical factors determining the future competitiveness of SAF producers.