US Biofuel Feedstock Imports Surge as Geopolitical Tensions Drive Energy Costs

The United States is accelerating the import of used cooking oil (UCO) from China, driven by a combination of regulatory shifts and geopolitical instability. As the US implements more stringent biofuel-blending requirements, the demand for sustainable feedstocks has intensified. Simultaneously, the ongoing conflict in Iran has pushed global energy costs higher. This environment has made recycled cooking oil a more cost-effective feedstock for fuel producers compared to other alternatives, effectively turning UCO into a relative bargain for US refiners. According to Kpler data, two recent cargoes carrying a combined 339,000 barrels of UCO arrived in the US over the past month. These supplies represent the largest imports of this specific feedstock recorded so far this year. A significant portion of these shipments was delivered to Port Arthur, Texas. The supplies are destined for the Diamond Green Diesel facility, a strategic partnership between Valero Energy Corp. and Darling Ingredients Inc. This trend underscores the intersection of environmental policy and energy security. As US refiners seek to diversify their feedstock sources, the reliance on recycled imports from China may increase to hedge against volatile global energy markets.