As Great Britain aims for net-zero energy targets, an exciting transformational process is unfolding in London’s commodity markets.
At the center of it all stands Alkagesta UK LTD. The company is pioneering sustainable energy initiatives by recycling kitchen waste, such as used cooking oil (UCO), into renewable fuel for use across finance, transportation, and climate-related targets.
London’s Next Commodity: Waste-Based Biofuels
The Governmental Renewable Transportation Fuel Obligation (RTFO) requires fuel providers to blend more biofuels with lower carbon emissions into conventional transportation fuels. In 2023, the UK sold more than 3.7 million litres of sustainable fuels. It is a nearly 10% increase over the previous year and accounts for 7.5% of total non-road and road fuel consumption in the UK.
The majority of these biofuels were derived from waste sources, such as used cooking oil (UCO) and animal fats. These can be double-credited under RTFO regulations because they provide both carbon reduction and recycling benefits. Industry analysts consider UCO among the feedstocks growing fastest for biofuel production, specifically Hydrotreated Vegetable Oil (HVO), which can emit up to 90% fewer greenhouse gases than traditional diesel.
But the global price is fluctuating, which can present both potential and risks for traders in the commodity market who utilise well-structured trading models.
Finance Meets Circular Economy in London
Alkagesta UK, a part of the broader Alkagesta group headquartered in Malta and active in Singapore, has emerged to bridge the “green asset gap” in energy markets. The company has achieved this through robust sourcing strategies, long-term agreements, transparent certification (including ISCC EU and Renewable Energy Directive III), and institutional partnerships across Europe, Asia, and Africa.
Their London office specialises in biofeedstock projects that connect financial infrastructures. “London offers an unrivalled mix of financial sophistication and institutional trust,” asserts Orkhan Rustamov, CEO of Alkagesta. “We aim to align structured investments with energy transition, creating disciplined growth that creates long-term value.”
ESG as a Core Driver of Alkagesta’s Growth
Alkagesta stands apart from traditional trading houses by integrating compliance and risk management into every transaction, using advanced due diligence tools to ensure each feedstock, such as UCO or animal fat, can be traced, certified, and bankable. The 2024 ESG report notes a 10% increase in processed feedstock volumes and a 39% increase in the number of collection points globally. Finance has increasingly become tied to ESG performance.
Alkagesta’s model offers tangible, reportable results for institutional clients, helping the City of London bridge the gap between environmental impact and profitable returns. Alkagesta’s Global Integrated Network Alkagesta Malta handles sourcing and logistics management, while Alkagesta UK organises investments and capital flows.
Alkagesta Singapore sources sustainable feedstocks while connecting producers with global buyers; through this International network, waste-based biofuels move efficiently between refineries, transport markets, and investment portfolios.
Leading Biofuel Innovation through ESG
In 2024, rapeseed oil accounted for approximately 50% of the EU’s biomass-based diesel production, while vegetable oil feedstocks accounted for around 60% of the EU’s total biodiesel production. The biofuels industry is gaining momentum and concentrates on advanced waste-based feedstocks, such as used cooking oils (UCO).
This shift aligns with traditional crop oils to advance decarbonisation across Europe. Experts estimate that ESG-related private equity transactions in the UK will reach approximately 71 billion in the first quarter of 2025. This represents an increase of nearly 90% compared to 2018. It is a sign of growing investor interest in sustainable and resilient assets, as capital is flowing from fossil fuels into sustainable feedstocks made from recycled materials and renewable energy projects – the exact specialization Alkagesta UK operates in.
The Bigger Picture: From Kitchen Waste to Capital
According to projections by the International Energy Agency, global demand for advanced biofuels will increase by 20% between now and 2030. Since biofeedstock imports represent a substantial source of imports into the UK, building relationships with reliable suppliers is key to energy security and meeting net-zero targets. Alkagesta LTD shows an example of how commodity traders are adapting.
The company combines governance, financial engineering, and sustainability in an innovative approach, which transforms waste into an asset class with both environmental and financial benefits.
As London adapts to a low-carbon economy, Alkagesta UK offers a model that links regulations, innovation, and investor returns in a seamless package. Orkhan Rustamov says, “This initiative goes far beyond opening a hub; it lays the groundwork for trust and responsibility in energy trading – at a time when London must show by example.”