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Five Commercial Agreements Accelerating Biofuels Production

Demand for biofuels is accelerating as governments and industries seek credible pathways to meet climate targets. Scaling biofuels remains essential for decarbonising hard-to-abate sectors where electrification is limited. Achieving this transition requires coordinated action across supply chains, technologies, and geographies.

 

This article highlights commercial agreements that are advancing biofuel adoption by converting agricultural residues and organic waste into valuable low-carbon fuels. Spanning across countries and sectors, these partnerships bring together biofuel producers, data centers, utilities, municipalities, and the shipping industry. Together, they demonstrate how commercial collaboration is enabling practical biofuel deployment to replace fossil fuels and support global decarbonisation efforts.

 

Joint Venture between Isolmec Group, Tozzi Sud and Anaergia

 

Challenge

Organic waste is a significant source of greenhouse gas emissions when left untreated. At the same time, agricultural residues remain underutilised despite their potential to be converted into low-carbon energy such as biomethane.

 

Solution

Isolmec Group, Tozzi Sud, and Anaergia have formed a joint venture to develop the Ora Biogas anaerobic digestion facility for BioHold in Basilicata, southern Italy.

 

The facility will process agricultural residues to produce renewable biomethane for injection into Italy’s gas distribution network. It is designed to generate more than 47,000 MWh of biomethane annually. The project has a contract value of approximately $16 million and is expected to begin operations by June 2026.

 

Outcome

The project will supply renewable gas to the national grid while displacing fossil-based natural gas. It supports Italy’s decarbonisation targets and strengthens circular use of agricultural residues.

 

Strategic Partnership between ITC and WasteFuel

 

Challenge

Maritime shipping emits around 1,000 million tonnes of CO₂ annually, accounting for roughly 3% of global emissions. Without decisive action, emissions could rise by up to 50% by mid-century, according to the International Maritime Organization. In addition to climate impacts, conventional marine fuels contribute to poor air quality near ports and coastal regions.

 

Solution 

WasteFuel, a US-based next-generation bioenergy company, and ITC, a leading Turkish integrated waste management company, have partnered to advance front-end engineering design for a green methanol biorefinery in Ankara, Turkey. The facility is planned to use biogas from ITC’s existing waste management operations to produce low-carbon marine fuel.

 

ITC’s Ankara site processes more than 1.8 million metric tons of municipal waste annually, providing a stable feedstock for biomethanol production. The project would be among the largest green methanol facilities globally and the first of its kind in Anatolia. A final investment decision is expected in early 2026.

 

Outcome

The project supports near-term decarbonisation of maritime shipping by supplying green methanol to a strategically important transport hub. Green methanol can reduce lifecycle greenhouse gas emissions by up to 90% compared with conventional marine fuels. The agreement also strengthens circular waste management while positioning Turkey as a supplier of sustainable marine fuels.

 

Letter of Intent between Town of Vegreville and Provectus Biofuels

 

Challenge

The Town of Vegreville in Alberta, Canada and surrounding agricultural regions generate large volumes of excess wheat straw each year. While some straw is needed for soil health, surplus material is often mulched, ploughed under, or burned.

 

These practices deliver limited agronomic value and contribute to avoidable air pollution and carbon emissions. Managing agricultural residues more productively has become an environmental and economic priority for the region.

 

Solution

Provectus Biofuels and the Town of Vegreville have signed a letter of intent to develop a biofuel facility converting surplus wheat straw into Renewable Jet Fuel. The proposed project would use non-food agricultural residues as feedstock, preventing open burning or low-value disposal.

 

The facility would also produce biochar as a co-product, improving soil quality, water retention, and long-term carbon storage. The initiative aligns with federal and provincial clean energy goals while supporting aviation decarbonisation.

 

Outcome

The agreement advances plans for the DobroJet Biofuels facility, supporting regional economic development and clean energy transition. It creates a new revenue stream for farmers while reducing emissions and strengthening Canada’s low-carbon fuel supply.

 

Service Agreement between Riverside Public Utilities and Anaergia

 

Challenge

Municipal wastewater treatment plants face rising pressure to reduce emissions, manage organic waste more efficiently, and meet long-term climate targets. Organic municipal waste and sewage sludge are often underutilised, while landfill disposal contributes to methane emissions and higher operating costs.

 

Solution

Riverside Public Utilities has entered a service agreement with Anaergia to upgrade the City of Riverside’s Water Quality Control Plant (RWQCP) and develop new organic waste-to-Renewable Natural Gas infrastructure.

 

As part of the Riverside Bioenergy Facility project, Anaergia will deliver engineering, procurement, and construction services, installing advanced organic waste processing, biogas production, and upgrading systems at the site. Following construction, Anaergia Services will provide long-term operations and maintenance, ensuring reliable performance and sustained emissions reductions.

 

Outcome

The project enables the RWQCP to divert organic waste from landfills and convert it into renewable natural gas, significantly reducing its carbon footprint. It transforms wastewater and municipal waste management into a source of clean energy.

 

Memorandum of Understanding between Bridge Data Centers and EcoCeres

 

Challenge

Data centers are highly energy-intensive and depend on diesel generators for backup power to ensure uptime. Diesel systems are costly, noisy, and emit significant air pollutants, including nitrogen oxides and particulates.

 

Solution

Bridge Data Centers has signed an MoU with EcoCeres to deploy hydrotreated vegetable oil (HVO) as a renewable alternative to diesel for backup generation across its APAC portfolio.

 

HVO functions as a direct replacement for conventional diesel and can be used in existing generator systems without equipment modifications.. The fuel is already seeing growing adoption across the data centers, with several major operators deploying HVO to decarbonise backup power systems while maintaining operational resilience.

 

The partnership covers technical standards, operational integration, and a pilot deployment, with Singapore serving as the regional implementation hub.

 

Outcome

The agreement enables lower-emissions backup power without compromising reliability. It supports Singapore’s green data center ambitions and provides a scalable pathway to reduce diesel dependence while meeting growing hyperscale demand.

 

Commercial pathways powering biofuel adoption

 

These commercial agreements show how biofuels are helping decarbonize hard-to-abate sectors. By converting agricultural residues and organic waste into renewable fuels, they support airline decarbonisation, cleaner shipping, and low-carbon industrial energy use.

 

Beyond emissions reduction, these partnerships deliver tangible economic value by creating new revenue streams, strengthening local supply chains, and improving waste management outcomes. Collectively, they illustrate how biofuels are becoming a scalable and commercially viable pillar of the clean energy transition.

 

Interested to explore more such partnerships in the biofuels sector?

 

The Net Zero Insights Platform offers exclusive access to a growing collection of offtake agreements, strategic partnerships, and other collaborations accelerating the adoption of biofuels.

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