Alkagesta, the London arm of the Alkagesta company, is focusing on converting used cooking oil (UCO) into green assets, according to the International Business Times UK. This initiative aligns with the UK's net-zero targets and the accelerating biofuels market, aiming to redefine investor engagement with the circular economy.
The UK's Renewable Transport Fuel Obligation (RTFO) mandates fuel suppliers to incorporate low-carbon biofuels. In 2023, 3.7 billion litres of renewable fuel were supplied, marking a 10% increase from the previous year and constituting over 7% of total UK transport fuel, as reported by gov.uk data.
Waste-derived inputs, including UCO and animal fats, significantly contributed to this growth, receiving double credits under RTFO rules. Analysts anticipate UCO will remain a rapidly expanding biofuel input, particularly for Hydrotreated Vegetable Oil (HVO), which can reduce greenhouse gas emissions by up to 90%.
Alkagesta integrates commodity trading, logistics, and structured finance to make circular-economy assets bankable. The company aggregates UCO supply, establishes long-term off-take agreements, and ensures ISCC EU certification across its network, providing transparency for investors.
Orkhan Rustamov, Alkagesta's Chief Executive Officer, stated that the firm's Singapore hub creates a strategic link between Europe and Asia, ensuring compliant fuel flows and contributing to a sustainable global trading ecosystem. The London office focuses on institutional partnerships and financing bio-feedstock projects.
The International Energy Agency forecasts a more than 20% increase in global advanced biofuel demand by 2030, with waste-derived fuels forming the majority of this expansion. Alkagesta's approach positions London as a hub for financing the global circular economy, turning UCO into a strategic commodity and asset class.
