Is waste cooking oil becoming a 'strategic raw material'? Exclusive interview with a Canadian Academy of Engineering fellow

Jack Sadler: Humanity has relied on petroleum-based fuels for over a century, and it will take time to scale up novel fuels as energy supplements. Yet in countries such as the United States and Brazil, ethanol-blended gasoline is already widely used in transportation. Meanwhile, green electricity generated from photovoltaic and wind power is expanding steadily worldwide—reflecting global concern over climate change. In the past, waste cooking oil, animal fats, and other types of biomass waste were costly and troublesome to dispose of. Today, however, these feedstocks are recognized as low-carbon-footprint raw materials capable of enabling decarbonization in long-haul transport—especially for producing renewable diesel and sustainable aviation fuel (SAF). Electrification faces major hurdles in aviation and long-haul trucking; thus, biomass-derived fuels hold significant, irreplaceable value in these sectors. The International Energy Agency (IEA) and other institutions project that by 2026, the biofuels industry will consume 90% of the world’s supply of waste cooking oil—reshaping global trade patterns. Competition for this feedstock between North America and Europe is intensifying, transforming what was once considered low-value waste into a strategic raw material for low-carbon fuel production. In 2022, SAF accounted for less than 0.1% of global aviation fuel consumption. Yet renewable diesel producers—including Neste, World Energy, and Montana Renewables—are forecasting robust growth: SAF’s share of total aviation fuel is expected to rise substantially by 2030. Reporter: For energy companies, retrofitting existing refineries to co-process biomass feedstocks represents a transitional approach—or the ultimate model—for low-carbon refining? Jack Sadler: Co-processing crude oil with low-carbon feedstocks like waste cooking oil helps decarbonize both refineries and their output. However, co-processing incurs higher production costs than conventional fossil-only refining. Policy support remains essential during this industry’s early stage—drawing lessons from policies adopted in the U.S. and Brazil to foster ethanol markets. Globally, more companies are entering co-processing. Sweden’s Preem (now VaroPreem) is a pioneer, with annual low-carbon fuel capacity reaching 1.4 million cubic meters. Canada’s Tidewater has built a co-processing unit capable of handling multiple lipid feedstocks—including rapeseed oil, waste cooking oil, tallow, and tall oil—with cumulative co-processed volume nearing 40 million liters. Today, conventional refineries remain the primary suppliers of transportation fuels—and are poised to stay central to low-carbon fuel supply in the future. Yet in the early phase, supportive policies—including low-carbon fuel standards and clean fuel regulations—are vital to ensure economic viability. Reporter: Several commercially proven co-processing cases exist globally. Which model do you believe is most suitable for large-scale adoption by Chinese energy enterprises? Jack Sadler: Although lipid feedstocks generally cost more than crude oil, the global co-processing industry continues to grow—and the IEA and other institutions closely track its expansion.

Is the European energy crisis unsolvable—and do energy stocks still have room to double?

This year, new-energy stocks have underperformed so badly they’re not even fit to polish old-energy stocks’ shoes. While carbon neutrality remains a long-term theme, don’t overlook the unique appeal of ‘old-school’ commodities like coal, oil, and gas. Amid Europe’s energy crisis, the investment logic for energy stocks has never been clearer: the energy sector has entered a sustained upward trend. Even Warren Buffett is adding to his oil stock positions—so why hesitate? Europe’s energy crisis is a mega-theme. Globally, the past few years saw premature dismantling of traditional energy infrastructure before alternatives were adequately established. Carbon neutrality is a decades-long goal—not something due tomorrow. The new-energy revolution overreached, causing shortages in coal, oil, and gas output. Starting in 2021, Europe—obsessed with environmentalism—began reaping the bitter fruits of its own making: natural gas and electricity prices skyrocketed. When it rains, it pours: this year’s Russia-Ukraine conflict further intensified Europe’s energy crunch. Europe’s energy lifeline had long been held tightly in Russia’s grip—and then, at America’s urging, Europe imposed reckless sanctions on Russia. In retaliation, Russia cut off Europe’s gas supply. On the evening of September 2, Gazprom announced that Nord Stream 1 would not resume operations as scheduled on September 3. Citing multiple equipment failures, the Nord Stream 1 pipeline would halt all gas deliveries until those faults were resolved. At first glance, this appears to be a technical failure—but in reality, it’s geopolitical maneuvering. This means Europe’s energy shortage has officially shifted from a market-driven supply-demand imbalance to an arena of international power play. Unless European leaders kneel and beg Putin for forgiveness—which is impossible—the crisis has no short-term resolution. With winter approaching, Europeans can’t possibly heat their homes by chopping firewood in the mountains. This summer brought extreme heat across the Northern Hemisphere—raising the likelihood of extreme cold this winter. Already deprived of Russian gas, Europe now faces surging prices for coal, natural gas, and crude oil. Energy prices there are far more likely to rise than fall.

Swiss Energy Firm VAROPreem Targets Double Earnings by 2030 Amid Europe Fuel Crunch

1 day ago

Swiss refiner VAROPreem announced a five-year strategy to double EBITDA to over $2 billion by 2030, leveraging Europe's fuel supply shortages and increased defense sector demand while expanding biofuel capacity.

reuters

2026-10-22

Swiss Energy Firm VAROPreem Targets Double Earnings by 2030 Amid Europe Fuel Crunch

Swiss Energy Firm VAROPreem Targets Double Earnings by 2030 Amid Europe Fuel Crunch

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