As used cooking oil glistens, Singapore’s smaller collection agents struggle

SINGAPORE’S smaller collection agents of used cooking oil (UCO) are struggling to keep up with the global sustainable fuel industry’s ravenous appetite, driving an increasing number of them to consider consolidation.

The global reference price for UCO hovered between US$0.80 and US$1.10 per kilogramme in May. Although it had come down from its peak during the pandemic, it was still higher than pre-pandemic levels.

Demand for UCO used to be led by the production of animal feed, but these days, biofuels are driving growth. UCO is a sustainable feedstock for biofuels, which are increasingly in demand as governments and businesses try to lower their carbon footprints.