Global Energy Giants Move Upstream to Secure Biofuel Feedstock

As global production capacity for Sustainable Aviation Fuel (SAF) and renewable diesel (RD) continues to expand, supplies of low-carbon feedstocks such as used cooking oil (UCO), animal fats, and non-edible oils are becoming increasingly tight.

In response, major Western energy companies are accelerating their upstream agricultural strategies. Recently, bp partnered with Corteva to establish a joint venture focused on developing oilseed crop supply chains for future SAF and RD production.

Industry analysts believe the biofuels sector is shifting from a “capacity expansion race” to a “feedstock competition.” With Europe enforcing SAF blending mandates and the United States continuing to support low-carbon fuels through tax incentives, securing reliable feedstock sources has become a key strategic priority.

The growing competition for UCO and other waste-based feedstocks is also driving energy companies deeper into agriculture, feedstock collection, and long-term supply agreements. Market participants expect upstream integration to become a major trend across the global SAF and renewable diesel industry over the next several years.