As global markets shift from fossil fuels to renewables, London’s financial elite are scouting an unlikely new asset: waste. Specifically, waste-based biofeedstocks such as used cooking oil (UCO), animal fats, and organic residues are the core ingredients for next-generation biofuels. These materials are increasingly viewed not as by-products, but as valuable commodities. And one of the participants in this transformation is Alkagesta, the London investment expertise of Alkagesta company, a global commodity trading house headquartered in Malta with a growing footprint in Singapore.
A changing energy investment landscape
The UK’s biofuels industry has entered a critical phase. The government’s Renewable Transport Fuel Obligation (RTFO) mandates fuel suppliers to provide progressively higher shares of renewable fuel, with targets set to rise to nearly 19.5% by 2030 (gov.uk).
According to Fuels Industry UK 2025, the country supplied 3.7 billion litres of renewable fuel in 2023, a 10% increase year-on-year. But as the domestic ethanol sector struggles with falling margins and import competition, investors are turning their attention toward waste-based feedstocks. This segment promises both regulatory alignment and ESG credibility.
Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF), both derived from UCO and other organic waste, are at the centre of this evolution. Analysts at ESL Fuels report that UK market prices for HVO feedstocks in early 2025 ranged between $1,650 and $1,950 per tonne, reflecting strong global demand and limited supply. This volatility, while challenging, is also attracting structured investors seeking to monetise sustainability-linked assets through risk-managed exposure.
Enter Alkagesta: A global player with an investment expertise in London
For Alkagesta this moment represents an opportunity. The company operates as part of the Alkagesta company, which was founded in 2018 and has since expanded into more than 40 countries, trading over 7 mln metric tons of commodities annually.
From Alkagesta Malta the group manages logistics, sourcing, and risk management. On the Asian base, Alkagesta Singapore, connects global investors with renewable feedstock suppliers across Asia-Pacific. The London subsidiary, established in 2024, completes this global triangle – leveraging the City’s deep financial expertise to structure investments aligned with the energy transition.
Source: Alkagesta
In a recent statement, Orkhan Rustamov, CEO of Alkagesta, noted:
“London offers a unique blend of financial sophistication and institutional trust. Alkagesta was built to harness that environment for disciplined growth and long-term value creation. Our ambition is to scale non-organically by aligning structured investments with the energy transition.”
The company’s philosophy is clear: combine governance with growth. Every transaction is backed by traceable sourcing, regulatory compliance, and ESG integration – qualities that institutional investors increasingly demand.
From fossil finance to feedstock finance
In traditional commodity trading, returns hinge on price arbitrage. In the emerging biofeedstock market, value comes from traceability and certification. That’s why Alkagesta company has obtained ISCC EU certification across its biofuels operations – ensuring that all traded feedstocks meet international sustainability criteria.
This certification allows Alkagesta to supply European refiners and fuel producers with verified renewable materials while also attracting investors under strict ESG mandates. The firm’s 2024 ESG Report highlighted a 10% increase in feedstock volumes processed and a 39% growth in collection points for UCO – evidence of both operational expansion and commitment to responsible sourcing.
Waste-based feedstocks are now seen as a hedge against both carbon risk and energy volatility. Moreover, with the UK’s sustainable fuel investment pipeline expanding, financial products linked to certified feedstocks could become mainstream within a few years.
Growing appetite for green commodities
London has long been the epicentre of global finance, but in recent years it has also emerged as a key player in the energy transition. Data from PitchBook indicate that ESG-focused private equity transactions in the UK totalled £71 billion in disclosed value in the first half of 2025 – up nearly 90% year-on-year. A significant portion of that activity centres on infrastructure and clean energy assets.
Alkagesta aims to bridge that capital with physical markets. Company is structuring investments in processing plants, logistics hubs, and carbon-efficient trading systems. Alkagesta’s team combines expertise in finance, engineering, and environmental compliance, creating as Rustamov said, as “resilient and future-proof energy portfolio.”
By integrating financial engineering with commodity logistics, Alkagesta’s approach could redefine how waste-based fuels are financed and traded. Instead of relying solely on subsidies or offsets, the model focuses on cash-generating, certified supply chains that can deliver measurable emissions reductions.
Global networks, local relevance
The firm’s operational footprint reflects a deliberate geographic strategy.
- Alkagesta Malta serves as the corporate and trading nucleus, ensuring compliance and governance.
- Alkagesta acts as the capital and structuring hub, connecting investors to sustainable assets.
- Alkagesta Singapore operates as the logistical bridge between Asia’s growing feedstock supply and Europe’s demand for certified fuels.
Together, these centres allow the group to navigate market volatility while maintaining transparency and efficiency across continents. It’s a model that mirrors how global oil traders once operated – but adapted for the low-carbon era.
The bigger picture: Investing in the circular energy economy
Globally, the International Energy Agency (IEA) forecasts a 20% increase in advanced biofuel demand by 2030, requiring hundreds of billions in new investment. The shift from fossil-based to waste-based inputs is central to that growth. For the UK, which relies heavily on imports for its biofeedstock, forming partnerships with traders and financiers such as Alkagesta is crucial for ensuring supply and achieving net-zero targets.
Beyond profit, the trend points to a philosophical shift in finance. Investors are beginning to value resources not just by their yield, but by their lifecycle impact. In this context, waste is no longer a liability – it’s an asset class.
In the age of decarbonisation, the next great commodity boom may not come from oil wells or lithium mines, but from the waste bins of restaurants and food processors. Alkagesta company, through its network of Alkagesta Malta, Alkagesta UK, and Alkagesta Singapore, is turning that possibility into a functioning global market.
London’s financiers adapt to the demands of a low-carbon future, Alkagesta is building a system, where the governance, innovation, and capital can converge to create the new energy economy. – one that profits not from extraction, but from regeneration.
The City, once built on black gold, is now learning to bank on green waste.
