At the port of Rotterdam, Europe's largest biofuel hub, prices for biodiesel for shipping fell to a historic low this week. According to Argus, on Monday a tonne cost just 985 dollars — the lowest in the entire history of observations.
The price rebounded to 1240 dollars, but it still remains noticeably below the cost of marine gasoil. That has been trading at 1528,50 dollars per tonne this week, although back in February, before the conflict in Iran began, it cost 714,50 dollars.
The drop in biodiesel is attributed to the actions of producers: they are cutting prices in order to boost sales and meet the EU's emissions-reduction targets. At the same time, traditional fuel is becoming more expensive because of supply disruptions in the Middle East.
When the cost of carbon allowances under EU rules and the emissions trading system is added on, biodiesel turns out to be cheaper than almost all conventional marine fuels. This is a rare situation that has already led to a rise in sales in Rotterdam in the second quarter of 2026.
Shipping accounts for about three percent of global greenhouse gas emissions. So far, biofuel accounts for only 0,6 percent of the global marine fuel market, and Argus estimates demand for advanced undiluted biodiesel in Rotterdam at 250 thousand tonnes for the whole of 2026.
Argus analysts note that such a price advantage should force shipowners to reconsider their strategies. But whether this will change the industry's long-term plans, only time will tell.
For now, the fall in biodiesel prices and the rise in traditional fuel are creating an unexpected economic incentive for greener solutions precisely where the EU's regulatory pressure is already felt most strongly.
