Malta-headed global commodity trading house Alkagesta Holding Co Ltd (Alkagesta) has announced that it has signed a new 5-year offtake agreement to purchase approximately 17 million litres of waste biofuel feedstocks in total from Malta and Italy.
According to a statement, the new deal marks a significant boost to the company’s operations in the Mediterranean and a further expansion of its growing biofuels desk.
The deal will involve Alkagesta working with local producers in both countries involved in waste-based collection activities.
This will provide them with a secure revenue stream, worth around EUR 20 million over the next five years, offering greater payment certainty and enabling them to boost production efforts with reduced risk.
Alkagesta will give these suppliers a guaranteed offtake for their product, reducing exposure to market volatility.
Timely announcement
The news comes as Europe’s biofuels market experiences significant growth, with stricter regulatory requirements requiring end users to increase usage.
Furthermore, Brent Crude’s recent market volatility has significantly narrowed the price gap between biofuels and traditional petroleum products, making the former an increasingly attractive option for buyers.
This deal further adds to Alkagesta’s ability to quickly source, transport, and supply biofuels in Europe and beyond. At a time when biofuels are experiencing significant and sustained growth, this deal will see us provide greater certainty to local producers whilst expanding our position as one of Europe’s leading biofuels traders, said Anthony Guida, Biofuels lead at Alkagesta, commenting on the announcement.
The news marks another milestone in the company’s growing biofuels market operation, following the recent announcement of a multi-year biofuels storage agreement at the Pantank facility in Antwerp, Belgium.
It also comes after they gained access to the NATO pipeline to supply jet fuel, including with the mandated sustainable aviation fuel (SAF) blend, earlier this year.
