I have witnessed many seismic shifts in my decades of work in the energy sector, from traditional oil and gas fields to sustainable fuel production. Today, as the world races toward decarbonisation, the biofuel market is at a critical juncture and may face its biggest upheaval yet. While much attention is given to commercial strategies and production technologies, one factor has emerged as the key to success: feedstock supply.

Feedstock is the backbone of biofuel production, accounting for more than 60% of total costs. It is more than just a line on balance sheets: it is the foundation upon which the entire business model rests. At EcoCeres, we have learnt that securing a robust, diversified, and sustainable feedstock supply chain is existential.

Weathering Seasonal Change

Feedstock is a vital strategic asset as well as a raw material. Traditional feedstocks such as corn, sugarcane, and vegetable oils are limited by food-versus-fuel debates and land use concerns. This has driven the industry toward waste-based and so-called dirty feedstocks like used cooking oil, animal fats, and municipal waste. These materials are more sustainable and often more effective in reducing greenhouse gas emissions.

They also present challenges. Their variability in quality and composition demands advanced refining technologies. At EcoCeres, we invest heavily in proprietary systems to handle these complexities and ensure consistent output.

Seasonality is another hurdle as the supply of water-based feedstocks can fluctuate month to month. The availability of used cooking oil spikes during holidays, for instance, while animal fat supplies vary according to livestock cycles. Managing these periods of feast and famine requires meticulous planning and inventory control to maintain steady year-round supplies.

Reliability and traceability are equally critical. In a market where sustainability certifications are non-negotiable, it is paramount to ensure feedstock is sourced responsibly and transparently. This not only ensures compliance with regulatory requirements but also gives businesses a competitive advantage. Companies with a reliable and traceable supply chain are better positioned to meet the demands of discerning customers and stringent regulators.

Diversification Equals Resilience

The industry must diversify feedstock sources to meet growing demand, especially with sustainable aviation fuel (SAF). Beyond traditional and waste-based options, next-generation feedstocks like cover crops, cellulosic biomass, and algae hold potential. Cover crops, for example, can be grown on fallow land rather than land set aside for food production, while cellulosic biomass is processed from agricultural waste. These alternatives expand supply sources and enhance sustainability.

At EcoCeres, we conduct extensive, industry-leading R&D to integrate different feedstocks into our production processes and build a resilient, scalable portfolio for the future.

Partnerships Give Competitive Edge

Competition for feedstock is reshaping the industry. Companies no longer compete only on price or technology but also on their ability to secure and manage feedstock supply chains in both horizontal and vertical directions.

Strategic alliances, joint ventures, and vertical integration are increasingly important. At EcoCeres, we have entered partnerships with agricultural producers, waste management firms, and technology providers to strengthen our supply chain and create a sustainable ecosystem.

Roadmap to a Sustainable Future

The biofuel industry is entering a decisive new era. As demand for sustainable fuels grows, feedstock supply will remain the critical differentiator. Companies that navigate availability, reliability, traceability, and seasonality will thrive. At EcoCeres, we are committed to leading the way forward through innovation, diversification, and collaboration.

The road ahead is challenging but full of opportunity. The future of biofuels depends as much upon how we source as what we produce. Against this complex background, feedstock supply is the single most important ingredient for success.

—Dannis Poon, EVP, Operation, EcoCeres