Alkagesta Waste-Based Biofeedstocks London Investors

An article about Alkagesta was initially published in the British media outlet London Loves Business.

A Shifting Investment Landscape

As global markets accelerate the move from fossil fuels to renewables, London’s financiers are turning their attention to an unexpected new asset: waste. Specifically, waste-based biofeedstocks such as used cooking oil (UCO), animal fats, and organic residues- once treated as by-products- are now being recognised as valuable inputs for next-generation biofuels.

Among the companies driving this transformation is Alkagesta, the London-based investment arm of Alkagesta company, a global commodity trading group headquartered in Malta and expanding across Singapore and Asia-Pacific.

The UK’s biofuels industry is entering a decisive phase. The government’s Renewable Transport Fuel Obligation (RTFO) requires suppliers to blend higher shares of renewable fuel- reaching 19.5% by 2030. According to Fuels Industry UK 2025, the UK supplied 3.7 billion litres of renewable fuel in 2023, marking a 10% annual increase.

Domestic ethanol producers face falling margins and import competition; investor focus is shifting toward waste-based feedstocks, which align with both regulation and ESG mandates.

H2: Monetising Sustainability

Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF), derived from UCO and other organic waste, are at the heart of this shift. According to ESL Fuels, HVO feedstock prices fluctuated between $1,650 and $1,950 per tonne in early 2025, reflecting tight global supply.

While this volatility challenges producers, it also allows structured investors to monetise sustainability-linked assets. That is where Alkagesta enters the equation.

Founded in 2018, the Alkagesta Group operates across 40+ countries, trading over 7 million metric tons of commodities annually. From Alkagesta Malta, the firm oversees logistics, sourcing and risk management. Its Singapore base connects renewable feedstock suppliers with global investors, while Alkagesta UK (established in 2024) anchors the financial strategy, leveraging London’s institutional expertise to structure investments supporting the energy transition.

“London offers a unique blend of financial sophistication and institutional trust,” said Orkhan Rustamov, CEO of Alkagesta. “Our ambition is to align structured investments with the energy transition, creating disciplined growth and long-term value.”

From Fossil Finance to Feedstock Finance

In the fossil era, value was driven by price arbitrage. In the biofeedstock economy, value depends on traceability, certification, and compliance. That’s why Alkagesta company has obtained ISCC EU certification across its biofuel operations, ensuring all traded feedstocks meet international sustainability standards.

This certification allows Alkagesta to supply European refiners and producers with verified renewable materials, while attracting ESG-driven investors. The company’s 2024 ESG Report noted a 10% rise in processed feedstock volumes and a 39% increase in UCO collection points- a signal of both operational expansion and commitment to responsible sourcing.

For London’s financial institutions, this level of traceability transforms “green” projects into measurable investments. Waste-based feedstocks are increasingly seen as a hedge against carbon risk and energy price volatility, offering both environmental and financial resilience.

Growing Appetite for Green Commodities

London has long been a powerhouse of global finance- and it is now becoming a centre for green commodities. PitchBook — UK ESG Private Equity and Venture Capital Report, H1 2025 data reveal that ESG-focused private equity deals in the UK reached £71 billion in the first half of 2025, almost doubling year-on-year. Much of that capital is being directed toward clean infrastructure and renewable energy assets.

Alkagesta’s strategy connects that capital to physical markets. The company structures investments in processing plants, logistics networks, and carbon-efficient trading systems. Its team combines expertise in finance, engineering, and compliance, creating what Rustamov calls “a resilient, future-proof energy portfolio.”

By merging financial engineering with commodity logistics, Alkagesta is redefining how waste-based fuels are financed, replacing subsidies with cash-generating, certified supply chains that deliver real emissions reductions.

Global Network, Local Relevance

Alkagesta’s structure mirrors that of traditional oil traders, but adapted for a low-carbon world:

Alkagesta Malta acts as the corporate and trading centre, overseeing governance and compliance.
Alkagesta UK serves as the capital and structuring hub, connecting investors to renewable assets.
Alkagesta Singapore bridges Asia’s growing feedstock supply with Europe’s certified fuel demand.

This tri-hub system allows the company to balance market volatility, maintain transparency, and ensure cross-continental efficiency – essential qualities as the energy market transitions to a greener model.

Investing in the Circular Energy Economy

The International Energy Agency (IEA) projects a 20% increase in advanced biofuel demand by 2030, requiring hundreds of billions in global investment. For the UK, which still imports much of its biofeedstock, building partnerships with traders and financiers like Alkagesta is vital to achieving net-zero ambitions.

But this shift is more than economic – it’s philosophical. Investors are beginning to value resources not just for yield, but for their lifecycle impact. Waste, once dismissed as a liability, is fast becoming an asset class in its own right.

In this new paradigm, Alkagesta represents how governance, capital, and innovation can converge to build a regenerative energy economy – one that profits not from extraction, but from transformation.

The City of London, once fueled by black gold, is now learning to bank on green waste.