Wellbred Trading buys French diesel refinery that runs on used cooking oil

Singapore-based commodities trader Wellbred Trading acquired French refinery La Nivernaise de Raffinage SAS that processes used cooking oil as feedstock, with plans to expand capacity next year by taking advantage of increased demand for renewables-based refined products.

"This acquisition gives us the opportunity to engage further with the renewable energy space and reinforces our commitment to growth in this important aspect of Wellbred's value chain," CEO Ghazi Abu al-Saud said Aug. 8 in a statement provided first to S&P Global Commodity Insights.

The 60,000 mt/year refinery in Premery produces biodiesel and is Wellbred's first refinery, it said.

"The biodiesel produced at our refinery will be suitable for both road and marine applications," Simon Lausch, managing director of Wellbred Trading and president of the refinery, told Commodity Insights. "The marine sector, in particular, is experiencing rapid growth in France with the implementation of B30 fuel standards."

Platts, part of Commodity Insights, assessed the bunker fuel price for B30 -- a blend of 70% 0.5% sulfur fuel oil and 30% used cooking oil methyl ester -- at $774.25/mt in Rotterdam Aug. 7, up from $754.75/mt at the end of last year.

Wellbred, which has offices in Geneva, Dubai and Lagos, was approved July 20 to buy the plant in an auction held by the commercial court of Nevers, France.

The refinery will operate under Wellbred's renewables desk based in Geneva, it said.

Wellbred Trading started its renewables desk in 2022 supplying biofuels to Norway and Sweden. Since then, it has added biofuels for the shipping industry. The French refinery allows Wellbred Trading to start trading feedstocks and distributing biodiesel in France, Germany and Spain, the company added.