Edible oils are the key ingredient in many consumer goods, and at the center of this $253 billion sector is palm oil. Palm oil is in nearly half of everyday consumer products, from the chocolate bar in your pantry to the shampoo in your shower. This ubiquity has made palm oil the world’s most consumed vegetable oil, reaching 78 million metric tons annually.
Yet the story of palm oil is more than just a tale of product and market growth. Conventional palm oil production has a troubled history of tropical deforestation and labor concerns, driving environmental and social controversy. Given these issues, while global demand for edible oils continues to grow, consumers, business, and government have increasingly prioritized certified sustainable palm oil. Companies that manage supply chains to meet these evolving environmental and social standards have a bright future.
The Advantage Goes to Tech-Driven Traceability
Because palm oil plants can produce up to twenty times more oil per hectare than alternatives like soybean or coconut, and require less land and cost less to produce than other popular edible oils, palm oil is here to stay. The question becomes how to drive sustainability as fast as possible. Leading producers and agribusinesses are making a difference through technology. For producers, precision agriculture practices, like satellite monitoring and predictive AI, help to improve yields and reduce environmental impact.
At the supply chain level, large agribusinesses are investing in blockchain traceability systems that create reliable records from plantation to processing facilities. Meanwhile, AI-driven risk assessment tools help flag potential ESG concerns before they become violations.
Infrastructure is equally critical. Transparent trade networks now integrate high-tech storage facilities with digital logistics platforms to validate sourcing claims and ensure traceability. These innovations are combining to create the next competitive advantage: end-to-end supply chain visibility and control.
Sustainability Becomes the Standard for Premium Markets
A fully transparent supply chain is becoming the price of admission to premium markets. The Roundtable on Sustainable Palm Oil (RSPO), which requires strict traceability and environmental standards, now covers 20% of global palm oil production. The growing importance of certification also creates a new service ecosystem, from sustainability consulting to verification platforms.
At the same time, some governments are tightening import regulations. The EU Deforestation Regulation (EUDR), for example, requires detailed geolocation data and deforestation-risk assessments for all palm oil entering EU markets. Similar regulations are under development in the UK and are being considered by other major importing regions.
Producers and refiners that invest in traceability and land-use transparency can unlock price premiums and long-term contracts, as well as uphold sustainability standards. Those that don’t may face stranded assets or lose access to critical markets altogether.
The Road Ahead for Palm Oil Trading
Palm oil is not going away, but how it’s grown, certified, and traced is being redefined. The shift toward sustainable palm oil creates demand for technology and infrastructure that can guarantee transparency across edible oil supply chains.
In the next several years, industry analysts project that over 50% of globally traded palm oil will carry some form of sustainability certification. Companies that can prove chain-of-custody from plantation to end product will command price premiums, secure long-term contracts, and maintain access to premium markets. Technologies like remote sensing and digital mapping can help bring down the cost of sustainable sourcing while increasing its scale.
As the industry continues growing and related technology matures, understanding the policy landscape, certification ecosystem, and supply chain innovation will set apart the players who thrive from those that get left behind.
While many finance internships promise exposure and growth, few programs actually include interns in the projects that can deliver true personal development. The Xtellus’ 2025 intern class shared three reasons why their experience this summer was different.
1. From Capital Markets to Commodities
Unlike traditional summer programs, where interns are assigned to just one department, Xtellus’ unique structure provides a breadth of experience to its summer intern class. With six subsidiaries under the Xtellus Partners umbrella, interns participate in team meetings spanning venture capital, asset management, private credit, capital markets, and commodities. They collaborate on diverse project pipelines, and gain insight into how the businesses interconnect in practice.
“What I liked most about my experience at Xtellus was the variety of different projects and areas of the business I was able to work on,” shared Alyssa, a rising junior. “I wanted to gain exposure to different areas of finance and was lucky to be able to work across all these divisions.”
2. A Culture of Mentorship and Growth
Senior leaders across the firm invest personally in intern development, creating an environment that prioritizes coaching, and our interns were outspoken about how much this mattered.
“I’ve had amazing mentors throughout the summer,” explained Doug, who focused on XTS Commodities’ oil trading operations. “The senior leaders were very welcoming, patient, and willing to help me learn.”
Jack agreed. “I have experience at other investment management firms. What struck me most about Xtellus was that it doesn’t matter how senior or busy the team is, people here always make time to invest in your growth.”
Leonid Kouperschmidt, Principal at Xtellus Partners and head of the internship program, explained:
“The best internship programs are mutual investments. At Xtellus, we look for interns who bring fresh perspectives and genuine curiosity to our work. In return, we provide the mentorship, exposure, and intellectually demanding work that help shape the next generation of finance professionals.”
3. Real Projects, Real Impact
Xtellus interns don’t observe from the sidelines. They contribute to actual client engagements and business-critical projects. Doug participated directly in sales team interactions with potential clients, while Jack worked alongside Xtellus partners to help management teams of small public companies navigate capital markets opportunities.
“In a small-team setting like this, you get exposure you can’t find anywhere else,” Jack noted. “If you take the internship by the reins and own your projects, you can make a real impact.”
Building Lasting Professional Relationships
As Doug put it, these are more than mere connections, but rather colleagues he’s “looking forward to keeping in touch with for a very long time.”
His advice to future interns summarizes the program well, “Don’t be afraid to ask questions about projects. It shows your interest and passion for the work, and the team is always willing to help.”
Finally, when asked to describe the program in three words, Xtellus interns chose: dynamic, engaging, and collaborative. We couldn’t have said it better ourselves.
Interested in joining Xtellus’ summer internship program? Visit our careers page to learn more about the program, and stay tuned for summer 2026 opportunities.
Sophisticated supply chains are turning yesterday’s waste into tomorrow’s fuel. As global demand for biofuels surges, market analysts project the industry to reach $326 billion in the next decade. The clean energy transition will depend on the ability to produce, move, and certify sustainable fuels across borders, and Europe is stepping into a leadership role in this transition. While the continent is currently a net importer of biofuels, it is positioning itself to become a global hub in the supply chain through recent policy and infrastructure investments.
Europe’s Strategic Gateway Position
Several constraints have limited Europe’s ability to scale domestic biofuel production, from limited agricultural land to stringent RED III compliance requirements, including double-counting limitations for Annex IX-A feedstocks and minimum GHG savings thresholds of 65% for new installations. These constraints, however, have driven a different approach to leading the energy transition. Instead, Europe’s clean energy strategy centers on becoming a trusted gateway for globally sourced feedstocks. Forward-thinking commodities specialists are helping make this vision a reality.
“Think of these supply chains as invisible highways across borders,” says William Zhao, Head of Biofuels at XTS Commodities. “They make it possible to bring used cooking oil from South East Asian restaurants to renewable diesel refineries in Rotterdam, while making sure that everything is RED III-compliant.”
This is a revolution in the making, rooted in how the world values waste.
The Rise of Waste-Based Feedstocks
Once seen as a disposal problem, waste-based feedstocks like used cooking oil (UCO) and agricultural residues now deliver revenue streams worth billions annually. This value comes from two main factors. For one, waste-based biofuels limit deforestation, and because they are already byproducts, they avoid the food-versus-fuel concerns that have historically complicated the biofuels industry.
Second, waste-based feedstocks naturally operate under finite supply constraints; there is only so much generated each year. This scarcity, combined with growing demand from refiners and fuel producers, creates competitive pricing dynamics. To get these finite resources to meet demand requires a sophisticated, borderless logistics network, which Europe is uniquely equipped to build.
A Mix of Digital & Physical: Building Reliable Energy Infrastructure
The EU has recently made policy and infrastructure investments that signal their focus on handling sustainable fuel. Strategic port hubs like Rotterdam, Genoa, and Antwerp are emerging as critical nodes in this network. But they will still need to improve physical and digital infrastructure to effectively connect feedstock producers to certified sustainable fuel end markets.
Within physical infrastructure, European ports need specialized handling facilities for waste-based feedstocks. Terminals need upgraded storage and blending capabilities, and pre-treatment facilities must be strategically located to optimize costs and maintain quality.
Digitally, biofuels’ supply chains require sophisticated traceability systems capable of tracking feedstock origins, processing steps, and sustainability certifications across borders. Mass balance accounting, blockchain verification, and digital audit trails have become essential, particularly for the ISCC certification compliance that enables access to European markets.
XTS has invested heavily in building these capabilities, explained Zhao. “XTS’ trading teams understand different certification frameworks and can structure transactions that meet multiple regulatory requirements simultaneously. Our logistics network handles specialized storage and transportation requirements, and our digital systems provide transparency and traceability.”
This mix of expertise and advanced infrastructure is critical to help transform waste into fuel sources that can balance the use of fossil fuels. However, regulatory misalignment between regions, such as differing sustainability criteria between the EU, U.S., and Asian markets, remains a challenge that requires careful navigation in global feedstock networks.
No Silver Bullets, Just Smart Matching
The other piece to emerging as a clean energy leader is understanding that no one technology will be a clear winner. Each sustainable fuel type serves specific markets based on technical requirements, regulatory frameworks, and economic realities. Europe will need a portfolio approach — applying specific fuels where it makes the most sense — to effectively meet the biofuels demand.
Sustainable aviation fuel (SAF), for example, is currently the only viable decarbonization pathway for aviation. Airlines burn through approximately 77 billion gallons of jet fuel annually, but they can’t simply plug their aircraft into charging stations along major routes. Unlike other common fuel alternatives, SAF can be used in existing aircraft with minor modifications, making it the critical technology the industry needs to meet EU net zero 2050 targets. SAF has the potential to reduce lifecycle emissions by up to 85%, depending on the feedstock and production pathway.
Meanwhile, renewable diesel (HVO) has proven an effective approach for road transport and marine applications because of its drop-in compatibility. FAME (Fatty Acid Methyl Ester), bio methanol, and UCOME (Used Cooking Oil Methyl Ester) serve as potential renewable fuel alternatives or blended fuel options in these industries. A portfolio approach to securing sustainable fuels, like the examples above, will help protect supply against geopolitical disruptions, natural disasters, or market volatility.
What Energy Leadership Looks Like
As regulations tighten and corporate sustainability commitments accelerate demand, the value of networks that connect global waste streams to certified fuel outputs will only grow. Balancing the use of fossil fuels with waste-based biofuels won’t happen overnight, of course, but the supply chains enabling that evolution are being built right now.
Europe’s approach of acting as a logistics and regulatory bridge between suppliers and end markets puts it at the center of the global energy transition. This will require supporting global feedstock networks with strategic investment in advanced infrastructure. The companies engineering these complex supply chains are currently shepherding the arrival of tomorrow’s more sustainable energy economy.
Imagine a container ship carrying your morning coffee from Colombia to your city. But instead of running on fossil fuels, it’s powered by biofuels extracted from restaurant grease collected in Bangkok. That’s the promise of biofuels. Made from biogenic materials like waste oils, agricultural residues, or energy crops, they are a bridge to net-zero emissions, especially in industries like aviation and shipping, where electrification isn’t practical.
Today, global biofuel production sits at approximately 47 million metric tons per year, but consumption is projected to surge to 224 million metric tons by 2030 — a nearly fivefold increase that underscores both the massive scaling challenge and unprecedented opportunity to build next-generation supply chains.
One Category, Many Fuels: Understanding the Biofuels Landscape
Biofuels come in many forms, each serving specific applications based on technical requirements, regulatory frameworks, and economic realities.
Biodiesel (FAME) is a renewable fuel made from vegetable oils, animal fats, or recycled grease. FAME (Fatty Acid Methyl Ester) is the chemical name for the molecules that make up most biodiesel produced today, which is then used as a blending component for conventional diesel in vehicles.
Renewable diesel, also known as Hydrotreated Vegetable Oil (HVO), is chemically identical to petroleum diesel. It’s used as a drop-in replacement oil, running in existing engines without modifications.
Bioethanol is produced from plants like sugarcane or corn. Commonly used as a fuel blendstock, bioethanol is blended with gasoline for road transportation.
Sustainable Aviation Fuel (SAF) is an alternative for airplanes produced from used cooking oils (UCO) and agricultural waste. SAF remains the only near-term pathway for decarbonizing air travel, though it is not yet widely scaled due to supply and cost challenges.
Marine biofuels are also gaining traction, as the shipping industry seeks decarbonization solutions. FAME can be blended with marine gas oil, while UCOME (Used Cooking Oil Methyl Ester) offers a waste-based alternative. Bio methanol, produced from organic waste and residues, represents another promising marine fuel pathway that can be used in modified engines or fuel cell systems.
Each of these fuels is a step toward a lower-carbon supply chain, but they depend on a critical input called feedstock.
Transforming Feedstock From Waste Streams to Energy Assets
Feedstock is the organic matter used to make biofuel. Traditional biofuels relied heavily on purpose-grown crops like corn, contributing to food-versus-fuel debates and deforestation worries. Modern biofuels are mostly made from different types of waste.
These include used cooking oil (UCO), tallow, and palm oil mill effluent (POME). UCO is exactly what it sounds like, with global collection networks now reaching restaurants around the world. Tallow is rendered animal fat, made from melting down leftover fat from suet or trimmings. POME is wastewater generated during the processing of palm oil.
As waste-based feedstock becomes more popular, new sources for collecting feedstock are emerging. For example, agricultural residues like rice husks, wheat straw, and corn stalks were once burned when they couldn’t be used. Now, they can become valuable revenue streams. Municipal waste facilities, algae, and forestry residues are other emerging feedstock sources.
Because feedstock quality varies significantly across regions and suppliers, sourcing requires sophisticated operational capabilities. Collection networks must engage many small suppliers while maintaining consistent quality standards, and storage and transportation require specialized handling to prevent degradation.
Navigating a Complex Regulatory Puzzle
The regulatory landscape adds even more complexity to the biofuels supply chain. Recent government policies aim to support growing demand, while defining standards for biofuels. For example:
- The European Union’s Renewable Energy Directive (RED) III establishes sustainability criteria and blending mandates to drive steady demand for certified biofuels. Under EU regulations, feedstocks are classified into Annex IX-A, which includes waste and residues with the highest sustainability credentials, and Annex IX-B, the advanced feedstocks. These different counting mechanisms and caps significantly impact market economics.
- The United States’ Inflation Reduction Act provides production tax credits that can significantly improve project economics.
- The International Civil Aviation Organization’s CORSIA framework encourages the use of low-carbon alternatives like SAF.
Yet these regulatory frameworks rarely align across regions. A biofuel qualifying for U.S. tax credits might not meet EU sustainability standards. SAF that complies with CORSIA requirements may face additional hurdles in specific national markets. While this results in a highly fragmented regulatory landscape, it also creates arbitrage opportunities for sophisticated traders and aggregators that can operate with agility.
XTS Commodities’ Approach: Building Global Feedstock Networks
XTS Commodities has built a global, feedstock-agnostic network to do just that. We apply a portfolio strategy, connecting fragmented feedstock sources with buyers across regulatory environments. Our strategy is based on the insight that every successful trade starts with reliable feedstock access.
We engineer reliability by:
- Securing supply redundancy across UCO, tallow, vegetable oils, and other emerging feedstocks to protect operations and balance seasonal shifts.
- Navigating and certifying feedstocks across regional standards to ensure materials meet the right certifications for each market.
- Leveraging geographic arbitrage so materials flow to regions with the highest value.
We handle the complexity that others avoid, benefiting suppliers seeking market access and buyers requiring compliance.
Incorporating Biofuels in Tomorrow’s Energy Mix
Biofuels alone won’t replace fossil fuels, but they are an essential transitional lever, especially in hard-to-abate sectors like aviation, maritime shipping, and heavy transport. As pressure mounts to decarbonize aviation, maritime shipping, and heavy transport, biofuels will play a critical role in the broader energy mix.
The path forward is complex. Land use constraints, feedstock volatility, infrastructure costs, and uneven policy support create real challenges. The energy transition will also unfold differently across regions based on local resource availability and regulations.
To scale effectively, companies must adopt diversified feedstock portfolios and build robust compliance capabilities across borders. The supply chains that can link global waste-based feedstocks to certified biofuels have become strategic assets, and the companies that can optimize these networks will help shape tomorrow’s energy landscape.