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Daily Update — October 07, 2025

Australia’s Biofuel Focus; China Powering AI; and EU Sanctions on Oil

Today is Tuesday, October 7, 2025, and here’s your curated selection of Essential Intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.

Energy Transition & Sustainability

Australia narrows biofuel focus, excludes UCO and hydrogen from key feedstock plan

 

The Australian government unveiled a focused approach to its bioenergy transition Oct. 2, releasing a discussion paper for its National Bioenergy Feedstock Strategy that excludes used cooking oil, municipal waste and nonbiogenic sources such as green hydrogen. The strategy, driven by the Labor government's aim to boost domestic biofuel production and achieve net-zero emissions by 2050, will concentrate on feedstocks derived directly from primary industries, namely the nation's agriculture and forestry sectors.

 

The strategy is designed to support feedstock supply chains and will work in conjunction with the government's A$1.1 billion ($728 million) Cleaner Fuels Program, according to Julie Collins, minister for agriculture, fisheries and forestry.

Artificial Intelligence

Building the Future: How China Leverages Energy and Infrastructure to Supercharge Artificial Intelligence

 

China’s vast development of renewable energy and infrastructure is more than an engineering feat. It is the foundation for the age of AI. From solar farms to high-speed rail and 5G networks, these investments provide the power and connectivity needed to operate AI at scale. The impact of these advancements is reflected by various S&P Dow Jones Indices China benchmarks offering distinct perspectives into the country’s capital markets. 

 

AI is energy-intensive and China, the world’s largest electricity producer since 2011, has rapidly expanded renewables, lifting their share to 36% today from 28% in 2021. In the first half of 2025, China added nearly 250 GW of solar and wind energy, raising its total solar capacity above 1 TW, more than half of global capacity.

Global Trade

Listen: EU sanctions package on Russian oil set to reshape European diesel and jet trade flows | Oil Markets

 

With European imports of products refined from Russian crude oil set to be banned from 2026, the spotlight is on exporters such as India and Turkey and how flows of diesel and jet fuel in Europe, the Middle East and Africa are anticipated to change.

 

Gary Clark is joined on the “Platts Oil Markets” podcast by middle-distillate reporters Nadia Bliznikova and Aruni Sunil to delve into the shifting trade patterns of oil products and the latest market reaction to the sanctions.

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