Biofuels Statistics By Production, Technology And Market Analysis

Introduction

Biofuels Statistics: Biofuels are made from natural materials like straw, tree bark, dried leaves, and wood. These materials are burned directly to produce heat, which is then turned into liquid or gas fuel. Wet organic materials, such as sewage, sludge, and vegetable oils, can also be turned into biofuels using methods like digestion and fermentation.

Solid biofuels like wood, straw, and household waste are burned to generate heat. Biofuels can also come from edible plants, including sugars and starches, non-edible plants, and algae and microbes.

In this article, we shall shed more light on biofuel statistics.

Editor’s Choice

• Global bioethanol and biodiesel production creates 2.2 and 1.8 exajoules (EJ) of energy each year.
• In 2023, more than 98% of gasoline in the U.S. had Ethanol mixed in, and Ethanol made up 10% of the total fuel used in vehicles by volume.
• E85, also known as flex fuel, is cheaper than regular gasoline but has less energy per gallon, causing a 15-27% decrease in fuel efficiency. The global biofuel demand is expected to rise by 11% from 2023 to 2024.
• Biofuels Statistics state that Bioethanol is an alcohol made by fermentation, mostly from sugar or starch crops like corn, sugarcane, or sweet sorghum. It can also be made from non-food sources like trees and grasses.
• Bioethanol can be used as fuel for vehicles in its pure form (E100), but it is usually mixed with gasoline to improve the fuel’s performance and lower vehicle emissions.
• Biodiesel is made from oils or fats using a process called transesterification. It can be used as a pure fuel (B100) or mixed with diesel to reduce harmful emissions.
• The global demand for biofuels is expected to grow by 56% between 2022 and 2027.
• By 2027, biofuels are predicted to make up 5.4% of the world’s transportation fuel, including 1% for planes.

What Are Biofuels?

Biofuel is a type of fuel made quickly from plant materials or waste, unlike fossil fuels like oil, which take millions of years to form. Biofuels can come from plants, farm waste, or waste from homes and industries. They are mainly used in transportation, but they can also be used for heating and making electricity. Biofuels are considered renewable energy because they come from natural sources. However, there are concerns about biofuels, such as the “food vs. fuel” issue, questions about whether they are sustainable, and the impact they have on forests and wildlife.

When burned in engines, biofuels generally create fewer greenhouse gases and are often thought to be carbon-neutral, meaning the carbon they release was previously absorbed by the crops used to make them. However, studies that look at the full process of making and using biofuels show that they can still cause a lot of emissions, especially if the land has to be changed or cleared to grow more crops for biofuels.

The results of these studies can differ based on things like the type of crops used and the production process. This shows how complicated it is to measure the true environmental impact of biofuels. In some cases, biofuels can have almost the same climate impact as fossil fuels, but in other cases, they can help reduce emissions.

Global Biofuel Consumption Statistics

(Reference: statista.com)

• Global biofuel use is expected to rise to 203.7 million metric tons in 2024, which is about 6 million metric tons more than in 2023.
• Starting in 2030, the yearly consumption of Ethanol and biodiesel is forecast to reach nearly 224 million metric tons.
• Biofuel statistics state that the U.S. is likely to remain the largest consumer of biofuels.

Biofuel Production By Region Statistics

(Source: ourworldindata.org)

• Biofuel statistics state that the U.S. produces the most biofuel energy, with 498 TWh.
• Brazil comes next with 281 TWh, followed by Germany at 44 TWh, the United Kingdom at 8 TWh, and Mexico at 0.4 TWh.

Spotlight on Biofuels in the Aviation Sector

• As more people realize the environmental impact of international air travel, which causes 13% of CO2 emissions in transportation, and with the aviation industry continuing to grow, the International Civil Aviation Organization (ICAO) set a two-part global goal.
• The first part is to keep CO2 emissions from international aviation at 85% of the 2019 levels by using sustainable aviation fuels (SAF) or buying certified offset credits.
• Biofuel statistics state that the second goal is to reduce emissions to zero by 2050 without relying on offsets.
• Although this long-term target isn’t mandatory, governments are expected to create action plans to help achieve it.

(Source: rootsanalysis.com)

• Biofuel statistics state that SAFs are seen as a key way to cut emissions.
• Right now, there are eight types of alternative biofuels approved by the ASTM International standard D7566, including fuels like HEFA-SPK, FT-SPK, and ATJ-SPK, which are almost ready for widespread use.
• These biofuels can be blended with regular kerosene, but the mix is limited to 50%.
• In 2022, the global SAF production reached 240,000 metric tons (kt), and this number is expected to double by 2023.
• The majority of SAF production is in Singapore, Finland, and the U.S., with most of it being HEFA-SPK. In 2022, the U.S. used 48 kt of SAF, including 15 kt from imports.
• The U.S. has set a goal through its Sustainable Aviation Fuel Grand Challenge to produce 9 million metric tons (Mt) of SAF by 2030, making up 10% of all kerosene supplied at U.S. airports.
• Similarly, the European Union’s ReFuel EU Aviation plan requires 6% SAF in kerosene at European airports by 2030 (about 3.5 Mt), with a target of 70% SAF by 2050.
• Brazil will implement a SAF mandate in 2027 to reduce CO2 emissions by 1%, with plans to reach a 10% reduction by 2037.
• Biofuel statistics state that Japan has also proposed a law requiring 10% of aviation fuel to be SAF by 2030, and China is working to increase SAF use to cut down on greenhouse gas emissions.
• These goals have led to many partnerships and supply agreements.
• In 2022, about forty were signed, including a big deal in 2023 between Shell and Rotterdam Airport to produce 820 kt of biokerosene and supply SAF for all aircraft fueling at the airport starting in 2024.

(Source: theicct.org)

• As the SAF market grows, the first prices for HEFA-SPK appeared in Singapore, the U.S., and Europe at around $2,500 per ton in 2021, rising above $3,000 per ton in 2022. However, prices are expected to drop below $3,000 per ton in 2023.
• The leading producer of HEFA (Hydroprocessed Esters and Fatty Acids) is NESTE from Finland, with plants in Singapore and Porvoo, Finland.
• In Europe, big oil companies like Repsol (Spain), TotalEnergies (France), ENI (Italy), BP (Spain and Germany), and soon Shell (in Rotterdam) have large production facilities to meet the demand for HEFA.
• Biofuels Statistics state that Asia has a plant in China, and the U.S. operates two HEFA plants.
• Currently, there are about forty new SAF (Sustainable Aviation Fuel) production projects in North America (Canada, the U.S., and Brazil), with around thirty in the U.S. There are also about thirty projects in Asia and nearly fifty in Europe.
• These projects focus on HEFA-SPK technology and include methods like the biomass-to-liquid process (FT-SPK), alcohol-to-jet, and Power-to-Liquid (e-fuel).
• In France, the government has introduced a tax incentive (TIRUERT10) and set a 1% SAF inclusion target in the 2022 finance law.
• This target will rise to 2% in 2025 and then to 6% by 2030. To support this, the French Environment and Energy Management Agency (ADEME) is reviewing several FT-SPK projects for investment grants.
• These include two projects for lignocellulosic biokerosene and two for synthetic kerosene (e-fuel) made from biogenic and industrial CO2.
• Additionally, Air France-KLM used the most SAF in 2023, with 80 kt, and aims to include 10% SAF by 2030.

Biofuels in Maritime Transport Statistics

• Most ships around the world still use heavy fuel oil, consuming about 280 million tons of oil-based fuel each year.
• The International Maritime Organization (IMO) has put in place rules to limit the amount of sulfur in ship fuels.
• These rules were made stricter in 2020, leading to a 70% reduction in sulfur oxide emissions from ships.
• Biofuels Statistics state that over the past few years, the maritime industry has also been calling for the sector to follow the 1.5°C goal of the Paris Agreement.
• In July 2023, the European Union passed a new law under the Maritime FuelEU initiative, aiming to reduce greenhouse gas (GHG) emissions from ships by 2% by 2025 and 80% by 2050, mainly through renewable and low-carbon fuels.

(Source: theicct.org)

• The main renewable fuels being considered for shipping today are biodiesels (FAME and HVO), biomethane (Bio-LNG), methanol, ammonia, and their e-fuel versions (e-diesel, e-methane, e-methanol, e-ammonia).
• Electrification and hydrogen are also being prioritized for power at docks and for river transport.
• Biofuel statistics state that the main alternative fuel to marine fuel oil is LNG (liquefied natural gas).
• In 2023, there were 355 LNG-powered ships in service, with around 400 more on order worldwide. The growth in LNG use has been rapid in recent years.
• Most LNG refueling stations are in Europe, but now every continent has some LNG infrastructure.
• However, Africa and South America each have just one LNG port. Bio-LNG is not widely used yet, but by mid-2023, it was available in almost 70 ports worldwide, including Singapore, Rotterdam, and the East Coast of the U.S., according to SEA-LNG.
• Additionally, the first marine biodiesel bunkering took place in 2022 at the ports of Rotterdam and Singapore, with about 280,000 tons of blended biodiesel (FAME and/or HVO). Other marine biofuels are still in the testing or demonstration phase.

Renewable Energy Employment By Technology in 2023

(Reference: irena.org)

Biofuel Market Analysis

(Source: gminsights.com)

• The global ethanol market is expected to reach over USD 206 billion by 2034.
• This growth is mainly due to the rising demand for Ethanol, especially in blended fuels, as governments focus on cutting emissions.
• With more gasoline being used in the transportation sector, the amount of Ethanol blended with fuel is also increasing, as both the government and industries encourage reducing greenhouse gas (GHG) emissions from traditional fuels.
• Additionally, there is growing interest in biotechnologies for producing cellulosic Ethanol, which comes from non-food crops like agricultural waste and grasses.
• Cellulosic Ethanol helps reduce climate change impacts, supporting environmental policies and boosting the overall growth of ethanol production.

(Source: gminsights.com)

• The coarse grain feedstock market is expected to grow at more than 10.5% per year by 2034.
• Biofuels Statistics state that ethanol is mainly made from coarse grains, which remain the biggest source of ethanol production worldwide.
• The demand for renewable fuel blends has led to an increase in corn ethanol production, supported by biofuel policies like the Renewable Fuel Standard (RFS).
• Biofuels Statistics state that Corn-based Ethanol is becoming more affordable because of improvements in farming technology that increase crop yields and reduce costs.
• Also, the byproducts of ethanol production, called distillers’ grains, are great for animal feed. This makes corn-based ethanol plants more economically attractive, which helps boost the feedstock market.

Conclusion

In conclusion, biofuels are becoming more important in the world’s move toward renewable energy sources as a way to reduce greenhouse gas emissions and dependence on fossil fuels. The growth of biofuel production, especially Ethanol and biodiesel, is driven by new technologies, government support, and the rising need for cleaner energy. With the development of new biofuels like cellulosic Ethanol and sustainable aviation fuels (SAF), the biofuel industry is expected to grow even more in the future.

This shift will not only help the environment but also create new economic opportunities in farming, technology, and energy industries. We have shed enough light on Biofuels Statistics through this article.