From Cooking Oil To Capital Flows: Inside Alkagesta’s Circular Economy Bet
An article about Alkagesta was initially published in the British International Business Times UK media outlet.
In the race toward net zero, Britain’s next breakthrough in green finance isn’t found in wind farms or electric vehicles- it’s hiding in the kitchen, more precisely, in used cooking oil. Once seen as waste, this byproduct has become a valuable raw material for the renewable fuels industry. As the UK’s biofuel market gathers momentum, Alkagesta, the London-based subsidiary of the global Alkagesta Group, is betting that turning waste into investment value could reshape how financiers participate in the circular economy.
The UK’s Waste-to-Fuel Momentum
At the centre of the UK’s renewable fuel strategy stands the Renewable Transport Fuel Obligation (RTFO), a policy requiring suppliers to blend an increasing proportion of low-carbon biofuels into conventional fuel. The Department for Transport states that deliveries of renewable fuel reached 3.7 billion litres in 2023, marking a 10% rise compared to 2022 and representing over 7% of the nation’s total transport fuel supply.
A substantial part of this growth stems from waste-based feedstocks such as Used Cooking Oil (UCO) and animal fats. These inputs are rewarded under RTFO rules for their dual environmental benefits- promoting recycling while cutting lifecycle emissions. Analysts expect UCO to remain among the fastest-growing biofuel inputs, especially as demand for Hydrotreated Vegetable Oil (HVO)- a renewable diesel that can cut greenhouse gas emissions by up to 90%- continues to expand.
Yet the sector faces turbulence. Data from ESL Fuels’ Q1 2025 Biofuel Market Update show that UCO-based HVO prices fluctuated between $1,650 and $1,950 (£1,230–£1,450) per tonne, reflecting global variations in waste feedstock supply. That means domestic bioethanol producers have struggled with tighter margins and competition from cheaper imports, prompting investors to focus on more resilient, vertically integrated value chains.
Where Finance Meets Circularity
That is where Alkagesta steps in. Operating as part of the Malta-headquartered Alkagesta Group, and supported by hubs in London and Singapore, the company combines commodity trading, logistics, and structured finance to make circular-economy assets both scalable and investable.
By consolidating UCO supply, structuring long-term offtake agreements, and maintaining ISCC EU certification across its network, Alkagesta delivers the kind of transparency demanded by institutional investors. This integrated model bridges a persistent gap- between sustainable projects that need funding and financial institutions seeking verified, ESG-aligned opportunities.
“Our clients value not only performance but trust and transparency,” said Orkhan Rustamov, Chief Executive Officer of Alkagesta. Singapore serves as a bridge where Asian markets meet global capital. By strengthening our presence there, we ensure compliant fuel flows and support the development of a sustainable global trading ecosystem.”
For Alkagesta, that bridge connects continents and profitability with purpose. The company’s London team focuses on building institutional partnerships and utilising the city’s financial infrastructure to channel investment into bio-feedstock projects across Europe, Asia, and Africa.
A Global Network Built for Sustainability
Alkagesta’s trading branch in Malta manages sourcing and logistics, while the London office specialises in capital structuring and investment strategy. In Asia, Alkagesta Singapore acts as the operational centre for sourcing sustainable feedstocks and linking regional producers to global buyers.
According to the company’s 2024 ESG Report, Alkagesta increased the volume of UCO collected and processed at its recycling facilities by 10% year-on-year, while expanding its collection network by 39% globally. The company’s plants now supply bio-feedstock compliant with the EU Renewable Energy Directive (RED III) a vital benchmark for exporters serving European markets.
These developments reflect the growing maturity of the waste-based fuel industry. Across the EU, roughly 46% of all vegetable oil is now used for biodiesel production, with HVO gaining ground due to its flexibility and exemption from blending limits. For investors in London, this signals a structural, long-term shift- not a short-term sustainability trend.
Why London’s Role Matters
As one of the world’s top hubs for structured finance and commodity trading, London holds a unique position in advancing the circular economy. Data from PitchBook — UK ESG Private Equity and Venture Capital Report, H1 2025 indicate that ESG-related private equity and venture capital deals in the UK reached £71 billion in disclosed value in the first half of 2025- nearly double the figure from the previous year. Institutional investors, responding to tightening ESG disclosure rules, are increasingly prioritising tangible assets with measurable impact.
This is where Alkagesta’s governance framework becomes key. The firm employs advanced due diligence tools- including World-Check and SeaSearcher- to trace every feedstock shipment and ensure full compliance. For investors such transparency distinguishes between symbolic sustainability and verifiable results.
The Circular Vision
Beyond numbers and certifications lies a broader ambition: redefining how global markets value waste. Alkagesta’s integrated model connects restaurants, food producers, and recyclers- once seen as separate parts of the chain- into a unified ecosystem where waste becomes a tradable, investable resource.
By anchoring its capital-structuring function in London, Alkagesta enables the City to play an active role in financing the global circular economy. Its Singapore and Malta operations reinforce this system by managing feedstock logistics, certification, and cross-border compliance- creating a vertically integrated and geographically balanced business model.
The Bigger Picture
The International Energy Agency (IEA) projects that global demand for advanced biofuels could rise by more than 20% by 2030, with waste-based fuels driving much of that expansion. For the UK this represents a dual opportunity: reducing emissions while mobilising long-term investment.
What was once kitchen waste has now evolved into a strategic global commodity- and, increasingly, a recognised asset class. Through its tri-continental structure – Alkagesta Malta, Alkagesta UK, and Alkagesta Singapore – the company is demonstrating how the circular economy can be both sustainable and financially viable.
As London consolidates its standing in sustainable finance, Alkagesta exemplifies how traditional commodity players are adapting to the low-carbon era – shifting from trading fossil fuels to financing renewable ones. Turning cooking oil into capital flows might sound unconventional, but in the economics of the 21st century, it represents the future of responsible growth.
Read the original article here: International Business Times UK
About Alkagesta
Alkagesta is a global commodity trading house specializing in petroleum and steel products, fertilizers, and biofuels. Established in Malta in 2018, the company operates as a multinational enterprise with 17 offices and representations worldwide. Alkagesta maintains partnerships with 28 international banks and conducts trading activities across 48 countries, facilitating approximately 9 million metric tons of commodity flows annually. Its extensive logistics network includes access to more than 700,000 cubic meters of storage capacity across Europe and Asia, supporting efficient and resilient global supply chains.
The company offers fully integrated trading capabilities — from sourcing and storage to delivery — underpinned by robust risk management, compliance, and governance frameworks.
Alkagesta was founded in 2018 by its management team and remains privately held and governed by senior leadership. Senior leadership, including the founding team, holds a significant equity stake in the company, which continues to grow in alignment with performance and strategic contribution. Today, the Group employs over 165 professionals and is built on tested systems, experienced governance, and a culture of continuous development.
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