EU may increase rapeseed oil use for biofuel production

The European Union may increase its use of rapeseed oil as a biofuel feedstock due to limited global supplies of used cooking oil (UCO). This was stated by Artem Hammerschmidt, Head of Vegetable Oils and Biofuels Research at Cefetra Analytics, during the OFI International 2026 conference in Amsterdam.

Demand for oils and fats from the biofuel sector is rising rapidly. According to Cefetra Analytics, their use for FAME, HVO and SAF production is expected to increase from 58.9 mln tons in 2025 to 72.5 mln tons in 2027.

At the same time, supply may struggle to keep pace with demand. In MY 2026/27, global oils and fats production is forecast to decline by 0.3 mln tons and exports by 0.8 mln tons, while demand could increase by 5.7 mln tons. Global stocks could fall by 3.3 mln tons.

UCO supply remains particularly tight as it is increasingly used as a biofuel feedstock. European companies may have to source it from more distant markets and pay higher prices, improving the competitiveness of conventional vegetable oils.

Under these conditions, European biofuel producers could increasingly turn to rapeseed oil. This may support demand for rapeseed and its processed products in the EU, with implications for the Ukrainian rapeseed market as well.

Tags: EU, rapeseed, rapeseed oil, biofuel