Fastmarkets Launches Used Cooking Oil, FOB Amsterdam, Rotterdam, Antwerp, Ghent

Why It Matters

Transparent, real‑time pricing for UCO helps European biodiesel producers manage feedstock costs and supports the EU’s renewable energy targets. The index also provides traders and investors with a reliable benchmark for a rapidly expanding waste‑oil market.

Key Takeaways

• Fastmarkets introduces daily UCO price index for Northwestern Europe ports
• UCO now makes up 24% of European biofuel feedstock, 9 Mt in 2024
• Index specs: ≤5% FFA, ≤2% MIU, ≥70 IV, ≤50 ppm sulfur
• Minimum contract size 100 tonnes, FOB loading within 30 days
• Data available by 4 pm London time, supporting transparent market pricing

Pulse Analysis

The European biofuel sector has shifted dramatically toward waste‑derived feedstocks, driven by the Renewable Energy Directive’s Annex IX mandates. In 2024, waste‑based inputs reached roughly 9 million metric tonnes, with used cooking oil (UCO) accounting for about 24 percent of total production. This surge reflects tighter sustainability criteria and the economic advantage of diverting waste streams into fuel. As regulators tighten carbon‑intensity targets, reliable pricing signals for UCO have become essential for producers and traders alike.

Fastmarkets responded by launching a dedicated UCO price index for the Amsterdam‑Rotterdam‑Antwerp‑Ghent corridor, published daily in USD per tonne. The methodology caps free fatty acids at 5 percent, moisture‑impurities‑unsaponifiable matter at 2 percent, and sulfur at 50 ppm, while requiring a minimum iodine value of 70 g I₂/100 g. Contracts start at 100 tonnes and must be loaded within 30 days of assessment, with data released by 4 pm London time. This granularity gives market participants a transparent, benchmark‑grade reference that mirrors real‑time supply‑demand dynamics.

The index is poised to reshape price discovery across the European biodiesel value chain. Producers can hedge against feedstock volatility, while refiners gain a clearer cost basis for blending decisions. Investors and ESG analysts will also benefit from a standardized metric that links waste management to renewable fuel economics. As UCO’s share of the feedstock mix continues to grow, Fastmarkets’ offering may encourage further investment in collection infrastructure and stimulate competition among suppliers, ultimately supporting the EU’s decarbonisation goals.