Finance
Middle East War Propels Demand for Local Biofuel, Verbio CEO Says
Published by Global Banking & Finance Review®
Posted on April 2, 2026
2 min readLast updated: April 2, 2026
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Quick Summary
Soaring fuel prices amid the Middle East war have boosted demand for locally sourced biofuels like biomethane and bioethanol, benefiting producers such as Germany’s Verbio, whose shares have risen ~60% since late February, as energy security and cost concerns take priority over climate.
Middle East Conflict Boosts Local Biofuel Demand and Production, Verbio Reports
Impact of Global Conflict on Biofuel Markets and Verbio's Growth
By Danny Callaghan
April 2 (Reuters) - Soaring fuel prices have been "extraordinarily beneficial" to biofuel producer Verbio, which is seeing rising demand as countries and companies seek ways to secure supplies and cut energy costs, its chief executive said on Thursday.
Verbio’s Production Model and Geographic Reach
Germany-based Verbio produces renewable fuels biomethane and bioethanol from locally sourced organic materials, such as food waste and agricultural residue, and is therefore shielded from the negative effects of the Middle East conflict. It has production sites in Europe, North America and Asia.
CEO Insights on Market Dynamics
"We are one of the very few absolute beneficiaries from the current situation," CEO Claus Sauter told Reuters in an interview. "When natural gas becomes extremely expensive, or diesel, we are not affected negatively, our business benefits from it."
Market Response and Share Performance
Verbio's shares have added around 60% to their value since the U.S. and Israel launched co-ordinated strikes on Iran at the end of February. At the same time, volatile oil and gas prices pushed European lawmakers to seek ways to ramp up biomethane supplies to reduce dependence on imported gas.
Rising Demand from New Sectors
"We’re seeing huge demand from hauliers who had heard of us but never engaged with the topic because diesel was cheap," Sauter said.
Global Energy Supply Challenges
Oil and natural gas prices have soared since the outbreak of the war and the closure of the Strait of Hormuz. Roughly one-fifth of the world's oil and gas normally transits through the crucial strait.
Biomethane’s Versatility and Future Outlook
Biomethane can be used as a replacement for fossil fuels in grid networks and transport. It is also a feedstock for fertiliser. Last year, the International Energy Agency said it expected demand for the fuel to rise fivefold by 2035.
Investor Priorities and Policy Shifts
Sauter said investors were prioritising energy security amid shocks to global supply chains.
Changing Priorities in the Biofuel Sector
"Three things matter for biofuels: agriculture, security of supply, and climate protection. In Europe, the priority was climate protection first, then security, then agriculture," Sauter said.
Security of Supply Takes Precedence
"Now, security of supply has jumped to the top."
(Reporting by Danny Callaghan in Gdansk, editing by Milla Nissi-Prussak)
Key Takeaways
- •Middle East conflict and closure of the Strait of Hormuz triggered dramatic spikes in oil and gas prices, fueling urgency for alternative domestic fuels like biomethane (en.wikipedia.org)
- •Verbio, insulated from fossil fuel volatility due to its renewable feedstocks, is one of the few clear beneficiaries, seeing surging demand and a ~60% share price gain since late February (en.wikipedia.org)
- •European policymakers and industry are accelerating support for biomethane to enhance energy security and decarbonization goals, including a Joint Biomethane Declaration urging expedited deployment (energymarketprice.com)
References
Frequently Asked Questions about Middle East war propels demand for local biofuel, Verbio CEO says
1How has the Middle East conflict affected biofuel demand?
The war has increased demand for biofuels as countries seek secure and affordable energy alternatives amid soaring oil and gas prices.
2What types of renewable fuels does Verbio produce?
Verbio produces biomethane and bioethanol from locally sourced organic materials like food waste and agricultural residue.
3Why is Verbio less affected by the Middle East conflict compared to fossil fuel companies?
Verbio uses local organic materials for production, making it less reliant on oil and gas from conflict-affected regions.
4What sectors are driving increased biofuel demand?
Sectors such as transport and fertilizer production are increasingly adopting biomethane as a replacement for traditional fossil fuels.
5How has Verbio's market performance changed since the conflict escalated?
Verbio's shares have risen about 60% since coordinated strikes increased concerns over energy security.
