On July 18, the European Commission announced the conclusion of its investigation into Chinese biodiesel imports, stating that no fraudulent behavior was identified. However, the investigation did uncover systemic weaknesses in the certification process, prompting the EU to strengthen its regulatory framework.

The investigation stemmed from concerns raised by German authorities in 2023, who suspected potential fraud in biodiesel imports from China. In response, the European Commission conducted a thorough evaluation in close coordination with Germany. While no direct evidence of fraud was found, the Commission noted that further checks could still be carried out if Germany deems it necessary.

Although fraud was not confirmed, the investigation revealed flaws in the way sustainability certifications were audited and verified. To address these issues, the Commission will implement several key measures:

• A dedicated working group has been formed to consider revisions to relevant regulations aimed at preventing fraud. These updates are expected to be completed by 2026 at the earliest.

• The EU will push for the mandatory use of its biofuel traceability database, which is already operational but not yet universally adopted. The Commission emphasized that broad, mandatory participation is essential for full transparency.

• Technical support will be increased to help voluntary certification schemes better implement existing rules and improve credibility.

While the EU currently does not plan punitive actions against Chinese biodiesel exports, this move signals a tightening of oversight systems. It also lays the groundwork for more robust and transparent trade practices in the renewable fuel sector moving forward.

SD Guthrie has launched a B30 biodiesel pilot project in collaboration with Malaysia’s Ministry of Plantation and Commodities (KPK), Petronas Dagangan Berhad (PETDAG), and the Malaysian Palm Oil Board (MPOB). The initiative aims to assess the reliability and scalability of high palm oil content biodiesel in real-world applications.

As part of the project, SD Guthrie will convert all plantation machinery and vehicle fleets on Carey Island, Selangor, to run on B30 fuel—a blend of 30% palm-based biodiesel and 70% petroleum diesel—supplied by PETDAG from its Melaka terminal.

The company expects the switch to reduce greenhouse gas (GHG) emissions by up to 23% in its daily operations. Managing Director Dato’ Mohamad Helmy emphasized that the move underscores SD Guthrie’s leadership in decarbonizing the plantation sector and aligns with Malaysia’s broader goal of reducing reliance on fossil fuels by promoting palm-based alternatives. “B30 biodiesel marks a critical milestone in our journey toward net-zero emissions. It not only helps us cut GHG emissions but also sets a new benchmark for sustainable practices in the plantation industry,” he said.

While B30 biodiesel currently comes with higher production costs, Helmy expressed hope that the project will pave the way for nationwide adoption, ultimately boosting domestic palm oil consumption and enhancing energy security.

On July 10, Greenergy, a UK fuel company owned by global commodities trader Trafigura, announced plans to close its biodiesel plant in Immingham, northeast England, and initiate consultation procedures for approximately 60 employees. This decision comes as another blow to the UK fuel industry following the bankruptcy announcement by Prax, the operator of the nearby Lindsey refinery. Greenergy stated that since halting production in late May and conducting a strategic review, despite implementing significant cost-cutting measures, the market environment remains unfavorable.

The plant supplies approximately one-quarter of the UK’s annual biodiesel production, producing biodiesel from waste oils and blending it into conventional diesel to reduce carbon emissions. Greenergy was acquired by the Trafigura Group last year. CEO Adam Treggor acknowledged that under the slow growth of UK biofuel policies and pressure from low-cost exports from the US, the company has struggled to make necessary investments in the Immingham plant to maintain operational competitiveness. This also highlights the UK’s lag in advancing renewable fuel policies.

The U.S. Clean Fuels Coalition recently expressed strong support for the improvements to the Section 45Z clean fuel production tax credit included in the “Great Beautiful Act” passed by Congress, and thanked President Trump for his signature and support. The new legislation not only extends the 45Z tax credit through 2029 but also allows taxpayers to transfer credit amounts, providing unprecedented policy certainty for the biodiesel and renewable diesel industries, particularly for small producers.

Kovarik, Vice President of Federal Affairs at the Clean Fuel Association, expressed gratitude for Congress’ efforts to create conditions for industry recovery and growth, particularly thanking Iowa Senator Grassley for advocating for increased credit amounts for small agricultural biodiesel producers, helping them transition smoothly to the new Section 45Z system. Additionally, the bill extends the Section 40A small producer credit through 2026 and increases it to 20 cents per gallon. Facilities producing 60 million gallons annually can simultaneously qualify for both this credit and the 45Z credit, with the same transfer rules applying.

The new bill also requires the Treasury Department to expedite clarification of technical details, including “qualified sales” rules and other fuel sales arrangements, and to exclude indirect land-use change (ILUC) impacts from lifecycle emissions calculations starting in 2026, to more fairly assess the carbon reduction value of different feedstock pathways. Additionally, the credits will be limited to feedstocks grown in North America, strongly supporting the development of domestic agriculture in the United States.